Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 4th October 2019
The majority of wholesale power and gas contracts fell, following a decline in Brent crude oil and EU ETS carbon prices. Day-ahead power and gas contracts were the exception, rising 6.8% and 19.6% to £42.7/MWh and 32.0p/th respectively. Forecasts of cooler temperatures offset predictions of higher wind generation next week. November and December 19 power dropped 4.6% and 3.6% to £49.5/MWh and £52.3/MWh, respectively. All seasonal power contracts also declined, lowering 4.1% on average, following their gas counterparts lower. A weekly decline in EU ETS carbon pressured power prices, with concerns of a no-deal Brexit causing carbon to fall to a fresh six-month low of €23.3/t on 4 October. Both November and December 19 gas contracts moved lower, down 4.7% and 3.0% to 43.0p/th and 48.6p/th respectively. Seasonal gas contracts went down 3.9% on average, following a decline in Brent crude oil, which fell 6.3% to $59.1/bl. Within-day day oil prices approached a two-month low, dropping to $57.7/bl on 3 October, as Saudi Arabian oil production returned to full output. API 2 coal was also lower, falling 2.8% to $65.7/t due to weaker demand and high coal stocks.
Written By Graham Paul
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