Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 12th April 2019
Wholesale power and gas contracts continued to move higher this week, driven by cooler temperatures and gas supply restrictions early in the week. Prices were also pushed higher by a surge in carbon prices, which rose to their highest level since September 2008. All baseload power contracts rose, following gas and carbon prices higher. Day-ahead power received extra support from weaker wind generation, with the contract gaining 3.4% to end the week at £45.8/MWh. Seasonal baseload power contracts rose 2.6% on average. The front season contract, winter 19 power, lifted 4.4% to £60.8/MWh. All near-term gas contracts rose this week, as colder temperatures lifted demand for heating and an outage at the Aasta Hansteen gas field restricted gas supplies. Day-ahead gas increased 3.5% to 39.5p/th, after hitting a four-week high of 41.0p/th on Tuesday 9 April. May gas edged 0.7% higher to 38.9p/th. Most seasonal contracts went up, rising 1.5% on average. Winter 19 gas experienced the biggest change, climbing 4.9% to 58.4p/th. Brent crude oil prices rose 2.9% to average $71.2/bl. Oil prices found support early this week amid concerns of supply disruptions in Tripoli, Libya, adding to supply risks from the US sanctions on Iran and Venezuela. API 2 coal prices gained 5.7% to average $74.8/t. EU ETS carbon prices jumped 13.2% to average €25.8/t. Prices ended the week at €27.0/t, their highest level since September 2008, supported by the extension to the UK’s EU departure date.
Written By Graham Paul
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