Energy Wholesale Market Review

Most power and gas contracts fell this week, driven down by several bearish factors. Day-ahead gas lost 5.9% to 27.20p/th, as greater wind generation later in the week weighed on prices. Day-ahead power dropped 8.1% to £35.40/MWh despite peaking above £40.00/MWh in the middle of the week due to low wind generation. February 20 gas was down 4.5% at 27.35p/th and March 20 gas decreased 6.1% to 26.25p/th. All seasonal gas contracts declined this week, down by 5.4% on average, while summer 20 and winter 20 gas dropped 5.3% and 7.5% to 25.95p/th and 37.50p/th, respectively. All seasonal power contracts followed gas and declined this week, down on average by 4.1%, as summer 20 power decreased 4.1% to £35.90/MWh, while winter 20 fell 5.4% to £44.15/MWh. Brent crude oil slipped 1.7% to $63.55/bl, ending the week at $61.75/bl, over fears that the outbreak of the coronavirus in Wuhan, China will hamper the country’s oil demand. EU ETS carbon increased this week, rising 1.9% to average €24.96/t although prices continue to struggle on low demand in the current mild winter season. API 2 coal averaged $60.51/t, declining throughout the week to continue the bearish trend seen with coal prices.

Energy Wholesale Market Review Week Ending 24th January 2020