Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 31st January 2020
All power and gas contracts fell this week with the domestic market reflecting the current bearish global markets. Day-ahead gas fell 9.7% to 24.55p/th to follow oil and LNG prices (which hit a 10-year low this week) lower, as an influx in LNG send-out ensured the market was well supplied. Day-ahead power fell 11.0% to £31.50/MWh, with consistently strong wind generation this week pressuring prices. February 20 gas was down 12.1% at 24.03p/th, and March 20 gas decreased 9.9% to 23.66p/th. All seasonal gas contracts declined this week, down by 7.3% on average, while summer 20 and winter 20 gas dropped 5.9% and 6.6% respectively, subsiding to 24.43p/th and 35.04p/th. All seasonal power contracts declined this week, down on average by 4.5%, as summer 20 power decreased 3.1% to £34.80/MWh, while winter 20 fell 3.3% to £42.70/MWh. Brent crude oil fell by 7.3% to $58.91/bl as investors fear the future of global oil consumption on lack of movement due to the coronavirus. EU ETS carbon slipped by 3.8% to €24.03/t amid the exit of the UK from the European Union, whilst API 2 coal was relatively unchanged at $60.50/t.
Energy Wholesale Market Review Week Ending 31st January 2020
Energy Wholesale Market Review Week Ending 24th January 2020
Most power and gas contracts fell this week, driven down by several bearish factors. Day-ahead gas lost 5.9% to 27.20p/th, as greater wind generation later in the week weighed on prices. Day-ahead power dropped 8.1% to £35.40/MWh despite peaking above £40.00/MWh in the middle of the week due to low wind generation. February 20 gas was down 4.5% at 27.35p/th and March 20 gas decreased 6.1% to 26.25p/th. All seasonal gas contracts declined this week, down by 5.4% on average, while summer 20 and winter 20 gas dropped 5.3% and 7.5% to 25.95p/th and 37.50p/th, respectively. All seasonal power contracts followed gas and declined this week, down on average by 4.1%, as summer 20 power decreased 4.1% to £35.90/MWh, while winter 20 fell 5.4% to £44.15/MWh. Brent crude oil slipped 1.7% to $63.55/bl, ending the week at $61.75/bl, over fears that the outbreak of the coronavirus in Wuhan, China will hamper the country’s oil demand. EU ETS carbon increased this week, rising 1.9% to average €24.96/t although prices continue to struggle on low demand in the current mild winter season. API 2 coal averaged $60.51/t, declining throughout the week to continue the bearish trend seen with coal prices.
Energy Wholesale Market Review Week Ending 24th January 2020
Energy Wholesale Market Review Week Ending 17th January 2020
Most power and gas contracts fell this week as the mild weather continued into the second half of January. Day-ahead gas lost 1.5% to 28.90p/th, following EU ETS and LNG prices lower. Day-ahead power was an exception, and rose 6.5% to £38.50/MWh, following drop in wind generation at the end of the week. February 20 gas was down 7.8% at 28.65p/th, and March 20 gas decreased 8.5% to 27.95p/th. All seasonal gas contracts declined last week, down by 6.0% on average, as summer 20 and winter 20 gas dropped 8.0% and 6.9% respectively, subsiding to 27.41p/th and 40.55p/th. All seasonal power contracts declined this week, down on average by 3.3%. Summer 20 power decreased 3.3% to £37.43/MWh, while winter 20 power fell 4.2% to £46.65/MWh. Brent crude oil fell by 4.1% to average $64.68/bl despite recovering to above $65/bl on 17 January. Crude prices continue to decline following lowered tensions in the Middle East, where it looks as though there will be no significant disruption to Brent crude oil supply. EU ETS carbon slipped by 0.1% to €24.49/t as prices fluctuated midweek on strong EUA auction turnout. API 2 coal lost by 2.0% to $56.28/t as the trend of a bearish API 2 coal market continues, reversing rare gains seen last week.
Energy Wholesale Market Review Week Ending 17th January 2020
Energy Wholesale Market Review Week Ending 10th January 2020
Most power and gas contracts fell this week, with the day-ahead contracts as the exceptions. Day-ahead gas rose 2.1% to 29.35p/th, following an increase in Brent crude oil and Asian spot LNG prices, despite mild weather in the UK this week. Day-ahead power rose 6.3% to £36.15/MWh, with wind generation dropping midweek to leave a shortfall of supply. February 20 gas was down 3.0% at 31.06p/th, and March 20 gas decreased 3.3% to 30.56p/th. Most seasonal gas contracts increased last week, up by 0.4% on average, but summer 20 and winter 20 gas dropped 0.7% and 0.2% respectively, subsiding to 29.80p/th and 43.57p/th. Most seasonal power contracts declined this week, down on average by 0.6%, as summer 20 power decreased 1.8% to £38.70/MWh, while winter 20 fell 1.0% to £48.70/MWh. Brent crude oil fell by 0.2% to $67.45/bl as global tensions meant that oil was trading above $69/bl on Monday, but ended the week bearishly at below $66/bl. EU ETS carbon slipped by 3.8% to €24.51/t as prices wavered below €25/t in an uncertain week for the global economy. API 2 coal climbed by 1.0% to $57.40/t in the first weekly increase for coal prices since early October.
Energy Wholesale Market Review Week Ending 10th January 2020
Written By Graham Paul
