Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 19th June 2020
Most power and gas contracts rose this week, as the UK government moved the coronavirus alert level down from four to three. Day-ahead gas rose 3.6% to 14.25p/th following a rise in gas consumption throughout the week. Day-ahead power fell 0.8% to £29.25/MWh, though higher wind generation early next week will add weight to the contract. July 20 gas was up 2.1% at 14.35p/th and August 20 gas decreased 0.3% to 14.67p/th. All seasonal gas contracts went up last week, rising 4.0% on average. Both winter 20 and summer 21 gas increased 4.5% and 5.3% respectively, lifting to 32.45p/th and 30.3p/th. All seasonal power contracts saw growth this week, up on average by 3.9%. Winter 20 and summer 21 expanded 3.9% and 4.8% respectively, rising to £44.17/MWh and £39.63/MWh. Brent crude oil prices inched up 0.4% this week to average $40.62/bl. Following a drop in prices towards the end of the previous week. Brent prices rose more than 10% throughout this week to finish close to $43/bl. Despite slipping to near $38/bl at the start of the week on the news of potential further coronavirus outbreaks, the markets shrugged this news off on reports of greater compliance by OPEC+ allies in cutting their oil production. EU ETS carbon rose to more than a three-month high of €24.40/t on 19 June.
Written By Graham Paul
