Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 27th October 2017
This week experienced bullish price movements for baseload power and Brent crude oil. Alternatively, remaining commodities and some gas contracts saw losses. The majority of baseload power contracts experienced gains this week. The day-ahead contract went up 0.9% to £49.0/MWh, as higher levels of demand with colder weather strengthened prices. Most seasonal baseload power contracts lifted this week. Summer 18 power gained 0.8% to £43.0/MWh, whilst winter 18 power boosted 0.7% to £48.3/MWh. Most near-term gas contracts decreased this week. An exception was the day-ahead gas contract, which grew 2.0% to 46.1p/th, as colder temperatures boosted demand for heating. The majority of seasonal gas contracts experienced gains. The winter 18 gas contract grew 0.6% to 50.1p/th, and the winter 19 contract lifted 1.0% to 48.3p/th. Day-ahead peak power experienced an uptick of 0.1% to £53.5/MWh. The contract ended the week £4.5/MWh higher than its baseload counterpart. Brent crude oil prices experienced an uptick of 0.9% to average $58.2/bl. On 27 October, Brent crude oil lifted $0.69/bl to $59.12/bl, its highest price since July 2015. API 2 coal prices lowered 0.8% to average $84.0/t. EU ETS carbon prices followed coal prices downwards, falling 1.6% to average €7.4/t, and ending the week at €7.2/t. Prices were 5.9% above the value this time this month (€7.0/t), and 27.7% higher than the level a year ago (€5.8/t).
Energy Wholesale Market Review Week Ending 27th October 2017
Energy Wholesale Market Review Week Ending 20th October 2017
The majority of commodity, power and gas contracts experienced losses this week. Exceptions were seen in the day-ahead power and gas contracts, which all increased. Day-ahead baseload power gained 5.4% to £48.5/MWh, as lower wind generation and higher commodity prices aided in strengthening prices. Baseload power contracts for this winter showed significant declines, with the November contract dropping 4.7% to £51.2/MWh. Seasonal contracts also fell, with summer 18 power losing 0.8% to £42.7/MWh and winter 18 power slipping 0.5% to £47.9/MWh. Declines were largely due to a reduction in gas prices, but also due to reduced concerns surrounding French nuclear plant availability for this winter. Peak power contracts for this winter also showed significant losses, with the November contract down 10.1% to £58.2/MWh. Most near-term gas contracts decreased last week, with the November contract trimming 0.4% to 49.3p/th. In contrast, the day-ahead gas contract grew 3.1% to 45.2p/th, with higher exports to Europe and declines in supplies. Seasonal gas contracts also fell, with summer 18 gas down 0.6% to 42.5p/th and winter 18 gas falling 0.3% to 49.8p/th. Brent crude oil rose 2.4% to average $57.7/bl. EU ETS carbon reached a new 21-month high of €7.7/t. API 2 coal prices increased 5.3% to average $80.7/t. On 17 October, API 2 coal reached a fresh three-year high of $85.5/t.
Energy Wholesale Market Review Week Ending 20th October 2017
Energy Wholesale Market Review Week Ending 13th October 2017
Brent crude oil, EU ETS carbon and API 2 coal all experienced gains last week, whilst it was a mixed week for power and gas contracts. Most near-term baseload power contracts experienced gains last week. The day-ahead contract was an exception, falling 7.1% to £46.0/MW. This was despite higher demand and outages to French nuclear reactors across the week. Most near-term gas contracts increased last week. In contrast, the day-ahead gas contract slipped 6.4% to 43.9p/th, with strong withdrawals from storage and cuts to exports to Belgium leaving the system oversupplied across most of the week. Brent crude oil prices experienced an uptick of 0.3% to average $56.3/bl. Concerns of cuts to oil exports from the Iraqi Kirkuk region due to potential unrest between Kurdish and Iraqi forces raise prices upwards at the end of the week. EU ETS carbon prices followed their commodities counterparts upwards, 1.9% last week to average €7.1/t. Bullish prices were likely owing to rising coal demand across Europe due to French nuclear outages, along with the conclusion of carbon price reforms for trading phase four. API 2 coal prices rose 1.3% to average $80.4/t, amid the news of French nuclear outages at 20 sites throughout the country. Low Chinese stockpiles led to robust demand from the nation, strengthening prices.
Energy Wholesale Market Review Week Ending 13th October 2017
Energy Wholesale Market Review Week Ending 6th October 2017
Gas and power contracts experienced gains this week. While, Brent crude oil, API 2 coal and EU ETS lowered after a period of growth. The day-ahead contract, leapt 23.0% to £49.5/MWh. Gains stemmed from outages at Sutton Bridge and Connahs Quay gas-fired power stations at the start of the week. Prices were also influenced by concerns of French nuclear availability, as it enters winter France is without 5GW of nuclear output. Most seasonal power contracts followed their near-term counterparts upwards this week. Summer 18 power experienced an uptick of 1.1%, whilst the winter 18 power contract rose 0.5% to £47.5/MWh. The day-ahead gas contract boosted 5.0% to 46.9p/th, amid high demand and an undersupplied system with reduced Norwegian imports due to outages. Brent crude oil prices subsided 3.0% to average $56.2/bl. A variety of events pushed oil down including news early in the week that OPEC output increased last month and high US, Libyan and Nigerian output across the week. API 2 coal prices fell 2.9% to average $79.4/t, this was despite increased European demand, reacting the news of French nuclear outages. EU ETS carbon prices followed their commodities counterparts downwards, slipping 0.9% this week to average €6.9/t.
Energy Wholesale Market Review Week Ending 6th October 2017
Written By Graham Paul
