Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 18th June 2021
It was a relatively mixed week for pricing fundamentals across gas and power markets this week, with day-ahead and short-term contracts rising, whilst longer dated seasonal contracts generally retreated. Consequently, day-ahead gas rose 3.0% to 71.48p/th, following increased gas-for-power demand, driven by lower wind output in the week. Day-ahead power rose 6.9% to £81.25/MWh, generally supported by periods of low wind output throughout the week, set to continue into the following week also. July 21 gas was up 1.4% at 70.40p/th, and August 21 gas increased 1.5% to 70.45p/th. Most seasonal gas contracts declined this week, down by 1.5% on average, while winter 21 gas increased 0.1% to 77.60p/th, while summer 22 gas dropped 0.1% to 49.55p/th. Similarly, most seasonal power contracts eased on average by 1.9%, as winter 21 power decreased 1.2% to £84.50/MWh, while summer 22 fell 2.4% to £58.10/MWh. Brent crude oil gained 2.2% to average $73.57/bl this week. Prices reached a fresh two-year high of $74.40/bl on 17 June. EU ETS carbon prices fell 1.3% to average €51.88/t. Similarly, UK ETS carbon dropped 3.2% to average £45.07/t.
Written By Graham Paul
