Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 14th December 2018
The majority of wholesale power and gas contracts rose week-on-week, with day-ahead power an exception as it was supported by strong wind generation whilst colder weather drove gas prices higher. Commodities experienced mixed movements, with both API 2 coal and EU ETS carbon prices rising week-on-week, compared to Brent crude oil which dropped despite upcoming cuts. Day-ahead power fell 0.9% to end the week at £64.1/MWh, whilst the month-ahead contract increased 8.7% to £67.4/MWh and February 19 power gained 7.6% to £67.0/MWh. Most seasonal baseload power contracts increased, up 4.0% on average. All gas contracts increased, with near-term contracts pressured by below seasonal normal temperatures last week, despite high LNG send-out continuing. Week-on-week day-ahead gas gained 10.2% to 66.4p/th. The new month-ahead contract rose 8.8% to 67.9p/th and seasonal gas contracts went up 5.0% on average. Brent crude oil prices decreased 1.1% to average $60.6/bl last week, reversing the previous week’s gains. Prices were weighed on by the release of data showing Chinese economic growth had slowed to the lowest in years despite news that US crude stocks had decreased by 7.3mn barrels the previous week. API 2 coal prices gained 2.1% to average $88.1/t, despite China reducing seaborne thermal coal imports for the remainder of 2018. EU ETS carbon prices lifted 6.3% to average €21.3/t, with within-day carbon prices peaking at €23.8/t on 14 December, a three-month high.
Energy Wholesale Market Review Week Ending 14th December 2018
Energy Wholesale Market Review Week Ending 7th December 2018
This week, the majority of wholesale power and gas prices fell, whilst commodities moved in the opposite direction. All gas contracts moved lower, with near-term contracts pressured by high LNG send-out and further arrivals of LNG cargoes. Week-on-week day-ahead gas lost 3.7% to 60.3p/th. Seasonal gas contracts decreased 0.7% on average with the biggest movements seen on the front season contracts. Summer 19 gas slipped 1.9% to 54.7p/th and winter 19 gas was 1.3% lower at 63.1p/th. Day-ahead power rose 6.9% to end the week at £64.7/MWh. High levels of wind generation weighed on the day-ahead contract for most of the week but forecasts of a significant drop in wind output on Monday saw the day-ahead price jump significantly on Friday. Most seasonal baseload power contracts decreased week-on-week. Summer 19 power lost 1.7% to £55.3/MWh and the winter 19 contract slipped 1.0% to £61.3/MWh. Brent crude oil prices increased 1.7% to average $61.3/bl last week, beginning to reverse recent losses. On Friday, OPEC and non-OPEC members agreed to cut oil production by 1.2mn bl/d from 2019. OPEC members will cut production by 800,000 bl/d, whilst the remaining 400,000 bl/d will be met by non-OPEC nations such as Russia. API 2 coal prices gained 2.0% to average $86.3/t, supported by increased European demand with the recovery of water levels on the Rhine river. EU ETS carbon prices lifted just 0.7% to average €20.0/t.
Energy Wholesale Market Review Week Ending 7th December 2018
Written By Graham Paul
