Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 23rd February 2018
This week saw gains across power, gas and commodity contracts, with substantial rises experienced in day-ahead gas and power prices. Day-ahead baseload power experienced notable growth across the week, rising 30.1% to £64.0/MWh, an eight-month high. This was driven by the curtailment in forecast wind generation, higher gas prices and an uptick in power demand amid cold weather. Day-ahead gas leapt 45.4% to 73.0p/th, a two-month high. A series of unplanned outages at the start of the week, forecasts of colder temperatures, and low imports of LNG supported prices. In addition, all near-term peak power contracts moved higher. Day-ahead peak power surged 34.8% to £71.3/MWh. API 2 coal prices climbed this week, rising 4.6% to average $82.5/t. Higher gas prices resulted in greater demand for coal for power generation, as the spreads became more favourable. Brent crude oil prices rose 2.5% to average $65.2/bl throughout the week. Drivers of growth across the week stemmed from renewed rising tensions between Israel and Iran, and the recovery of the global equity market. EU ETS carbon prices grew 0.8% to average €9.7/t this week. Carbon prices rose amid more favourable spreads for coal-fired power generation and reacted to rising German power prices. Prices rose towards the end of the week reacting to a dip in the next auctions volume.
Energy Wholesale Market Review Week Ending 23rd February 2018
Energy Wholesale Market Review Week Ending 16th February 2018
The majority of power and gas contracts increased this week, with seasonal contracts recovering from the multi-month lows experienced the prior week. Commodity prices experienced mixed movements. Day-ahead baseload power rose 2.5% to £49.2/MWh, with lower wind generation forecast for Monday (19 February). The day-ahead contract was relatively stable this week with just a £0.90/MWh difference between the highest and lowest price. Day-ahead gas slipped 0.4% to 50.2p/th. Prices decreased throughout the week amid rising temperatures and lower gas demand for both power generation and residential heating. Summer 18 power gained 1.5% to £43.1/MWh and the winter 18 contract lifted 1.2% to £48.8/MWh, following their gas counterparts. Summer 18 gas lifted 1.9% to 42.2p/th and the winter 18 contract gained 0.8% to 49.8p/th. Brent crude oil prices lost 4.1% to average $63.6/bl throughout the week. On Wednesday, Brent crude fell to a nine-week low of $62.4/bl. Continued concerns over rising US oil output and Baker Hughes data showing the US rig count was at a three-year high pushed prices lower. API 2 coal prices continued to fall this week, dropping 1.4% to average $78.9/t. However, prices did experience a week-on-week gain, reaching $80.5/t on Friday, up from $77.0/t last Friday. EU ETS carbon prices gained 7.4% to average €9.6/t this week.
Energy Wholesale Market Review Week Ending 16th February 2018
Energy Wholesale Market Review Week Ending 9th February 2018
The majority of power and gas contracts decreased this week, with some seasonal contracts hitting multi-month lows. Commodity prices also declined throughout the week. Day-ahead baseload power fell 6.3% to £48.0/MWh. The contract followed its gas counterpart relatively closely, seeing higher prices in the first half of the week before easing back down. Week-on-week, day-ahead gas fell 3.1% to 50.4p/th, with warmer temperatures forecast for Monday. Day-ahead prices experienced growth in the first half of the week amid colder than average temperatures and an unexpected outage on the Forties oil and gas pipeline, before retreating towards the end of the week as temperatures rose and the outage swiftly came to an end. Brent crude oil prices lost 4.4% to average $66.4/bl throughout the week. On Friday, Brent crude fell to a six-week low of $64.5/bl. Continued concerns over record high US oil output, an unexpected increase in US crude stockpiles and a drop in global equities conspired to weigh on prices. API 2 coal prices continued to fall this week, dropping 6.5% to average $80.0/t. Coal prices were pushed lower by rising Russian coal exports as well as plentiful supply from Colombia and the US. EU ETS carbon prices slipped 0.1% to average €8.9/t this week. Prices picked up towards the end of the week and rose above the €9.0/t mark on Friday, following strong auction results.
Energy Wholesale Market Review Week Ending 9th February 2018
Energy Wholesale Market Review Week Ending 2nd February 2018
Most near-term gas and power contracts experienced gains this week, while seasonal contracts declined. Commodity prices also subsided throughout the week. Day-ahead power rose 6.7% to £51.3/MWh, driven higher by a rise in its gas counterpart. Nuclear plants were also at reduced capacity amid planned maintenance, adding upwards pressure to prices. Near-term gas contracts experienced growth after a period of sustained losses. Day-ahead gas rose 8.3% to 52.0p/th. Prices were bullish with gains occurring mid-week amid forecasts of colder weather. Prices also experienced gains amid National Grid increasing their near-term gas demand forecasts. Seasonal gas, baseload power and peak power contracts all experienced losses, similar to the previous week. Brent crude oil prices lost 1.0% to average $69.4/bl throughout the week. OPEC efforts to cut production have been undermined across the week amid strong output from the US and Canada. API 2 coal prices continued to fall this week, lowering 2.3% to average $85.6/t. Despite strong demand for coal in northern-China, weakening demand across the country weighed on prices. EU ETS carbon prices declined 1.4% to average €9.0/t. Prices lowered amid weak auction results and weakening coal demand across Europe. Prices may have additionally become bearish as speculators start selling their positions to lock in profits after recent highs.
Energy Wholesale Market Review Week Ending 2nd February 2018
Written By Graham Paul
