Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 15th December 2017
Bullish results occurred across the majority of contracts this week. Day-ahead gas prices expanded 4.8% across the week to 60.5p/th, with prices primarily impacted by the explosion at the Baumgarten gas hub in Austria, coupled with the long-term unplanned outage at the Forties gas and oil pipeline located in the North Sea. Consequently, prices reached a four-year high. Similar influences supported API 2 coal movements, which saw prices reach a four-year high on 12 December. On average, prices grew 2.8% to $88.4/t. Brent crude oil prices rose 2.1% to average $63.7/bl. Falling US crude stocks, the Forties outage and tensions between Israel and Palestine all aided in higher oil prices. This Tuesday, prices reached a two-year high of $65.5/bl. Baseload power contracts rose markedly this week, with day-ahead power climbing 1.8% to £57.0/MWh. Prices reached a six-month high of £63.4/MWh on 12 December, influenced by higher gas prices and reduced gas-to-power capacity. The month-ahead power contract experienced robust gains, rising 4.6% to £57.7/MWh. Peak power contracts experienced strong gains throughout this week. Day-ahead peak power went up 2.2% to £63.1/MWh. EU ETS carbon prices extended upon the previous week’s losses, falling 3.8% to average €7.1/t, with prices largely depressed by weak auction activity.
Energy Wholesale Market Review Week Ending 15th December 2017
Energy Wholesale Market Review Week Ending 8th December 2017
Mixed results occurred across contracts this week, with near-term gas contracts experiencing gains. In contrast, most near-term baseload and peak power contracts lowered. The day-ahead gas contract grew 1.3% to 57.8p/th. With prices supported by higher gas-for-power demand amid low nuclear output. Expectations of colder weather for the following week also aided prices. Most near-term baseload power contracts lowered this week. However, the day-ahead contract lifted 4.5% to £56.0/MWh. Prices were strengthened falling wind and solar PV generation across the week. All seasonal power contracts lowered this week, with the winter 18 and summer 19 power contracts both declining 2.2% and 3.3% to £48.5/MWh and £40.1/MWh respectively. Most near-term peak power contracts declined this week. However, like power, day-ahead peak power lifted 6.5% to £61.8/MWh. Brent crude oil prices retreated from the previous week’s gains, falling 1.6% to average $62.4/bl. Losses stemmed from rising US production throughout the week. EU ETS carbon prices weakened 3.0% to average €7.4/t. Prices were depressed by weak auction results during the week. Brent crude oil prices retreated from the previous week’s gains, falling 1.6% to average $62.4/bl. API 2 coal prices increased 1.2% this week to average $86.0/t. Gains stemmed from regained Chinese demand, with the nation scaling back its recent gasification campaign.
Energy Wholesale Market Review Week Ending 8th December 2017
Energy Wholesale Market Review Week Ending 1st December 2017
Gas and commodity prices experienced gains throughout this week. Meanwhile, bearish movements occurred across most baseload and peak power contracts. The largest gains observed this week stemmed from carbon prices, with EU ETS carbon prices strengthening 1.9% to average €7.7/t. Strong auction results and rising coal demand supported prices. As Europe enters the winter season, increased demand for coal across the continent aided in tightening API 2 coal prices. Upturning last week’s losses, coal prices grew 1.2% to average $84.6/t. Across the week, Brent crude oil prices increased 1.5% to average $63.5/bl. The primary source of gains in oil prices stemmed from expectations and the agreement of extensions to current production cuts by OPEC and non-OPEC members on 30 November. Day-ahead gas grew 1.4% to 57.0p/th. Gains in prices were supported by colder temperatures and higher demand. Towards the end of the week the system became undersupplied forcing end of week prices upwards. Most baseload power contracts lowered this week. In contrast, day-ahead power experienced marginal growth, rising 0.4% to £53.6/MWh. Prices were strengthened by continued nuclear outages across the UK due to annual maintenance, and strong demand across the week. Most near-term peak power contracts weakened this week. Meanwhile, day-ahead peak power remained unchanged at £58.0/MWh.
Energy Wholesale Market Review Week Ending 1st December 2017
Written By Graham Paul