Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 24th November 2017
After bearish movements the previous week, bullish actions occurred across most power, gas and commodity contracts this week. The largest gains observed stemmed from near-term gas contracts, which all moved upwards. Day-ahead gas leapt 8.6% to 56.2p/th, as outages across three UK gas facilities and at the Oseberg gas field forced prices upwards. Month-ahead gas grew 7.6% to 56.4p/th, up from 52.4p/th the previous week. The day-ahead power contract lifted 4.0% to £53.4/MWh. Month-ahead power boosted 5.2% to £54.4/MWh. Near-term power prices were supported by the gains experienced in the gas market. Brent crude oil prices continued to experience minor changes, as it showed an uptick of 0.4% to average $62.5/bl. Strengthening prices stemmed from expectations that extensions to OPEC and non-OPEC production cuts will be agreed upon at the OPEC meeting next week. However, doubts have lingered over Russian support for the cuts. Most near-term peak power contracts increased this week. Day-ahead peak power rose 6.9% to £58.0/MWh. EU ETS carbon prices expanded 0.2% to average €7.5/t, with post-2020 EU ETS reforms agreed upon this Wednesday. In contrast, API 2 coal prices subsided this week, falling 1.1% to average $83.6/t. This was due to a continued decline in Chinese demand for coal, with air pollution measures restricting coal use across northern China.
Energy Wholesale Market Review Week Ending 24th November 2017
Energy Wholesale Market Review Week Ending 10th November 2017
Bullish price movements continued across power, gas and commodity markets this week. The day-ahead baseload power contract leapt 5.1% to £52.0/MWh. This was due to nuclear outages across Great Britain and France, as well as rising coal and gas prices. However, these gains were capped by increased wind generation throughout the week. All seasonal power contracts experienced gains this week. The day-ahead gas contract gained 7.7% to 52.8p/th, with colder temperatures boosting demand for heating. Additionally, nuclear outages increased gas demand for power generation, and continued high exports to Europe boosted near-term prices. All peak power contracts also increased this week, with the day-ahead peak power contract gaining 8.1% to £56.8/MWh. Brent crude oil prices strengthened 2.6% to average $62.4/bl, up from $60.8/bl the previous week. On 7 November prices reached a 28-month high of $64.1/bl, owing to rising tensions between OPEC members Saudi Arabia and Iran concerning the recent conflicts in Yemen. API 2 coal prices experienced an uptick of 0.1% to average $86.6/t. On 10 November API 2 coal reached $88.9/t, a fresh four-year high, with news of commencing strike action across South African coal mines. EU ETS carbon prices climbed 2.5% to average €7.6/t, with prices boosted by burgeoning European coal demand. On 6 November prices increased to €7.9/t, a fresh 22-month high.
Energy Wholesale Market Review Week Ending 10th November 2017.
Energy Wholesale Market Review Week Ending 3rd November 2017
This week generally experienced bullish price movements across power, gas and commodity contracts. Baseload power contracts predominantly experienced gains this week. The day-ahead contract climbed 1.1% to £49.5/MWh. This was amid declines in the level of wind generation throughout the week. Robust demand across the week also aided power prices. Most seasonal power contracts expanded this week. All near-term gas contracts increased this week. The day-ahead gas contract gained 6.3% to 49.0p/th, with colder temperatures boosting demand for heating. Whilst, increased exports to Europe boosted near-term prices. In contrast, the majority of seasonal gas contracts experienced losses this week. Day-ahead peak power subsided 1.9% to £52.5/MWh. Brent crude oil prices rose 4.4% to average $60.8/bl. On 1 November prices reached a 30-month high of $61.7/bl, after data showed OPEC’s compliance rate with output cuts hit 92% in October. Prices continued to be strengthened by expectations that OPEC and non-OPEC production cuts might be extended. API 2 coal prices gained 3.0% to average $86.5/t, up from $84.0/t the week before, with robust Asian demand. On 1 November API 2 coal climbed to $87.75/t, a four-year high. EU ETS carbon prices climbed 0.2% to average €7.4/t, with prices boosted by strong auction results towards the end of the week. Prices rose to €7.8/t on Friday afternoon, its highest price since January 2016.
Energy Wholesale Market Review Week Ending 3rd November 2017.
Written By Graham Paul
