Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 28th February 2020
Most power and gas contracts decreased this week, reflecting the movements of the global economy, with the day-ahead contracts as the exceptions. Day-ahead gas rose 6.2% to 24.00p/th, as forecasts of a drop in temperatures saw a rise in expected gas demand. Day-ahead power followed gas and rose 6.8% to £35.15/MWh as forecasts of lower wind generation extended gains. March 20 gas was down 7.3% at 20.85p/th, and April 20 gas decreased 3.3% to 21.11p/th. All seasonal gas contracts declined this week, down by 5.8% on average. Summer 20 and winter 20 gas dropped 6.0% and 5.9% respectively, subsiding to 22.00p/th and 34.38p/th. All seasonal power contracts declined this week, down on average by 4.0%, as summer 20 power decreased 4.7% to £32.75/MWh, while winter 20 power fell 4.4% to £42.15/MWh. Brent crude oil fell 6.5% to average $53.93/bl as prices recorded their largest weekly fall in over 4 years, dropping 10.6% from Monday to Friday. EU ETS carbon lost 3.7% to average €24.04/t this week as prices lost the recent momentum seen in recent weeks, ending the week at €23.33/t. API 2 coal saw further losses this week, falling 3.6% to average $57.19/t.
Energy Wholesale Market Review Week Ending 28th February 2020
Energy Wholesale Market Review Week Ending 21st February 2020
Most power and gas contracts rose this week as the UK domestic market reversed losses seen last week. Day-ahead gas rose 9.7% to 22.60p/th although an influx of LNG did see prices ease towards the end of the week. Day-ahead power rose 25.8% to £32.90/MWh, recovering from record lows to follow other markets higher this week. March 20 gas was up 9.0% at 22.50p/th and April 20 gas increased 5.4% to 21.84p/th. Seasonal gas contracts were mixed this week, but ultimately moved down 0.1% on average. Summer 20 gas increased 1.9% to 23.41p/th, while winter 20 gas dropped 0.4% to 36.54p/th. All seasonal power contracts boosted this week, up on average by 1.9%, as summer 20 and winter 20 lifted 2.5% and 0.3% respectively, rising to £34.36/MWh and £44.07/MWh. Brent crude oil rose 4.9% to $57.68/bl marking the first weekly increase of the commodity since early January, though prices dropped on Friday. EU ETS carbon gained 5.9% to €24.98/t to continue recent momentum with fewer EUAs auctioned this week. API 2 coal lost by 0.4% to $59.62/t with prices fluctuating this week on uncertainty of demand in China and increasing output from renewable sources (largely wind).
Energy Wholesale Market Review Week Ending 21st February 2020
Energy Wholesale Market Review Week Ending 14th February 2020
Most power and gas contracts fell this week as mild temperatures and Storm Ciara passed over the country. Day-ahead gas fell 9.5% to end the week at 20.60p/th. Prices were pushed down due to less gas-for-power demand and declining LNG prices and sunk to a five-month low of 20.40p/th on Thursday. Day-ahead power fell 1.3% to £26.15/MWh as high wind generation sunk prices to the lowest values seen on our records (dating back to 2008) . March 20 gas was down 7.3% at 20.65p/th, and April 20 gas decreased 6.2% to 20.73p/th. Most seasonal gas contracts boosted this week, up by 1.4% on average. Summer 20 gas was the exception and dropped 2.7% to 22.97p/th, while winter 20 gas increased 2.3% to 36.70p/th. Most seasonal power contracts rose this week, up on average by 1.1%, as summer 20 power was again an exception and slipped 1.4% to £33.52/MWh, while winter 20 power rose 2.1% to £43.92/MWh. Brent crude oil fell by 0.7% to $54.99/bl as oil prices fluctuated this week on a mixture of bearish and bullish news. Brent crude oil prices ultimately ended the week higher than last week, the first week-on-week increase in over a month. EU ETS carbon gained 1.1% to €23.59/t as strong EUA auction activity lifted prices to above 24/t near the end of the week. API 2 coal lost 1.3% to $59.64/t as coal-for-power demand struggles on low demand in China due to the outbreak of the coronavirus in China.
Energy Wholesale Market Review Week Ending 14th February 2020
Energy Wholesale Market Review Week Ending 7th February 2020
The majority of short-term power and gas contracts fell this week, with some future seasonal contracts gaining despite substantial losses seen in the day-ahead contracts. Day-ahead gas fell 7.3% to end the week at 22.75p/th, with forecasts of fluctuating temperatures seeing gas extend losses this week. Day-ahead power followed gas and fell 15.9% to £26.50/MWh as expected high wind generation next week pushed prices lower. March 20 gas was down 5.9% at 22.27p/th, and April 20 gas decreased 7.1% to 22.10p/th. Most seasonal gas contracts traded higher this week, up by 2.8% on average. This was despite the summer 20 gas dropping 3.4% to 23.61p/th, while winter 20 gas increased 2.3% to 35.86p/th. Seasonal power contracts generally boosted this week, up on average by 1.0%, as summer 20 power expanded 2.3% to £34.00/MWh, while winter 20 fell 0.7% to £43.00/MWh. Brent crude oil fell by 6.0% to $55.36/bl as the spread of the coronavirus continued to impact global markets, though the majority of falls came earlier in the week as the commodity price steadied later on. EU ETS carbon slipped by 2.9% to €23.33/t to follow oil and gas prices lower, while API 2 coal lost by 0.6% to $60.28/t despite predictions that prices could rise due to increasing demand in China.
Energy Wholesale Market Review Week Ending 7th February 2020
Written By Graham Paul
