Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 13th December 2019
Most power and gas contracts fell this week, with the day-ahead and a few seasonal contracts as the exceptions. Day-ahead gas rose 6.2% to 32.50p/th, following colder temperatures on average this week. Day-ahead power rose 13.8% to £42.10/MWh, with lower wind generation forecast for the start of next week. January 20 gas was down 7.5% at 36.39p/th, and February 20 gas decreased 6.9% to 37.17p/th. Most seasonal gas contracts declined this week, down by 2.8% on average. Summer 20 and winter 20 gas dropped 5.6% and 3.8% respectively, subsiding to 33.12p/th and 44.19p/th. Most seasonal power contracts also declined this week, down on average by 1.2%, as summer 20 power decreased 2.4% to £41.42/MWh, while winter 20 fell 1.6% to £49.70/MWh. Brent crude oil rose 3.3% to $64.27/bl as oil prices reacted positively to a tweet by US President Donald Trump this week that the US was getting “very close to a big deal with China”. EU ETS carbon reversed last week’s losses gaining 1.6% to €24.92/t as the Conservative party won a working majority in the UK general election this week. API 2 coal lost 3.8% to $59.72/t as prices dipped below $60.00/t for the first time since July 2016.
Energy Wholesale Market Review Week Ending 13th December 2019
Energy Wholesale Market Review Week Ending 6th December 2019
All power and gas contracts fell this week as temperatures rose above 10°C. Day-ahead gas fell 27.8% to 30.60p/th, with record high LNG send-out this week adding additional downward pressure to prices. Day-ahead power followed its gas counterpart and fell 25.4% to £37.00/MWh as high wind generation extended losses from a general decrease in power consumption. January 20 gas was down 9.7% at 39.34p/th, and February 20 gas decreased 8.0% to 39.94p/th. All seasonal gas contracts declined this week, down by 5.4% on average. Summer 20 and winter 20 gas dropped 8.5% and 5.1% respectively, subsiding to 35.08p/th and 45.92p/th. All seasonal power contracts declined this week, down on average by 3.4%. Summer 20 power decreased 5.4% to £42.45/MWh, while winter 20 fell 3.1% to £50.53/MWh. Brent crude oil fell 2.3% to $62.24/bl as OPEC allies agreed to deepen oil supply cuts in the first quarter of 2020 by 500,000 bl/d, though failed to commit to any change to oil supply for the rest of the year. The cut of 1.7mn barrels per day is equivalent to roughly 1.7% of the current global supply and are amongst some of the deepest cuts to supply this decade. EU ETS carbon slipped 0.8% to €24.54/t with lack of notable driver activity and API 2 coal lost 3.0% to $62.09/t.
Energy Wholesale Market Review Week Ending 6th December 2019
Written By Graham Paul
