Energy Wholesale Market Review

All gas contracts fell this week, reflecting a period of warmer weather experienced throughout the week, compounded by reduced demand. As a result, day-ahead gas fell 6.7% to 34.60p/th, owning to the aforementioned conditions. Similar to gas contracts, the majority of power contracts declined this week with the notable exception being the day-ahead contract which rose 20.3% to £44.5/MWh, supported by weaker renewable output during the week combined with periods of lower wind generation. December 20 gas was down 7.9% at 37.21p/th, and January 21 gas decreased 8.9% to 38.22p/th. All seasonal gas contracts declined this week, down by 4.4% on average. Summer 21 and winter 21 gas dropped 8.0% and 4.5% respectively, subsiding to 31.62p/th and 40.49p/th. All seasonal power contracts declined this week, down on average by 3.4%, as summer 21 power decreased 5.2% to £41.40/MWh, while winter 21 fell 2.6% to £48.49/MWh. Brent crude oil climbed again this week, lifting a further 2.1% from the week prior to average $44.05/bl – reaching a two-month high on 19 November with prices at $44.31/bl. Oil prices continued to gain momentum from further vaccination developments announced throughout this week and OPEC+ are looking at the potential of delaying supply increases originally proposed for January 2021. EU ETS carbon climbed a further 2.9% to average €26.23/t, this week. Like other commodity markets, carbon prices rose to a milestone high, reaching a one-month high of €27.60/t on 18 November. Carbon prices, like many global commodities markets this week, found support from the positive news of COVID-19 vaccinations.

Energy Wholesale Market Review Week Ending 13th November 2020.