Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 26th June 2020
Gas and power contracts saw mixed movements this week, following the strong gains made last week. Day-ahead gas fell 5.6% to 13.45p/th, following lower gas demand towards the end of the week amid high temperatures and strong renewable output. Day-ahead power fell 6.8% to £27.25/MWh on strong wind generation forecasts for the early parts of next week. July 20 gas was down 5.6% at 13.55p/th and August 20 gas decreased 5.5% to 13.87p/th. All seasonal gas contracts declined this week, down by 1.7% on average. Winter 20 and summer 21 gas dropped 0.4% and 1.9% to 32.33p/th and 29.73p/th, respectively. Seasonal power contract movements were mixed slipping 0.1% on average. The winter 20 and summer 21 baseload contracts rose 1.2% and 0.1% respectively, rising to £44.71/MWh and £39.65/MWh. A week of volatile movements in the oil market saw Brent crude oil prices rise by 3.3% to average $41.98/bl, despite significant losses in the middle of the week. The EU ETS carbon price saw some volatility this week, ultimately reaching a 4-month high of €25.32/t on 25 June on stronger demand.
Energy Wholesale Market Review Week Ending 26th June 2020
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.
Energy Wholesale Market Review Week Ending 19th June 2020
Energy Wholesale Market Review Week Ending 12th June 2020
Contracts in the GB energy market saw mixed direction this week, as colder weather and easing lockdown restrictions added some upward pressure to prices. Day-ahead gas rose 7.8% to 13.75p/th on forecasts of higher gas-for-power owing to French nuclear outages next week. Day-ahead power rose 1.7% to £29.5/MWh and was also affected by the outages. July 20 gas was up 8.5% at 14.06p/th, and August 20 gas increased 2.3% to 14.71p/th. All seasonal gas contracts declined this week, down by 2.0% on average, while both winter 20 and summer 21 gas dropped 2.3% and 2.7% respectively, subsiding to 31.06p/th and 28.77p/th. Seasonal power contracts saw mixed direction this week, down on average by 0.6%,as winter 20 power decreased 0.8% to £42.52/MWh, while summer 21 fell 1.1% to £37.83/MWh. On average, Brent crude oil prices saw a 2.3% rise in prices this week up to $40.47/bl. Prices reached a 3-month high of $42.80/bl on 8 June, but fell back down to below $39/bl at the end of the week on fears of oversupply. Despite threats of supply disruptions in Libya concerns of oversupply weighed on prices throughout the week, falling notably on Friday due to reports of a rise in coronavirus cases in the US.
Energy Wholesale Market Review Week Ending 12th June 2020
Energy Wholesale Market Review Week Ending 5th June 2020
Most power and gas contracts rose this week, potentially marking a change of course for the GB energy market. Day-ahead gas rose 45.7% to 12.75p/th on forecasts of colder weather next week that will spark a rise in gas demand. Day-ahead power rose 20.8% to £29.00/MWh with a higher gas price, and as forecasts of lower wind generation have helped to support the contract. All seasonal gas contracts boosted this week, up by 2.3% on average, with winter 20 and summer 21 gas lifting 3.3% and 2.7% respectively, to 31.8p/th and 29.58p/th. Seasonal power contracts were supported by rising gas prices, up on average by 1.6%. The winter 20 and summer 21 power contracts expanded 1.7% and 2.0% respectively, rising to £42.86/MWh and £38.25/MWh. Brent crude oil prices saw a sharp rise at the beginning of the week as the market speculated on the next OPEC meeting, scheduled to happen on the 9 June. Despite being rocked throughout the week on varying reports on Russia’s potential compliance to production cuts, the Brent crude price was ultimately 12.5% higher than this week, trading at $39.56/bl on average. EU ETS carbon prices rose 1.3% to average €21.68/t this week, as the easing of lockdown measures in Europe is expected to increase consumption levels. API 2 coal prices rose to $53.23/t on short-term supply issues from Russia due to domestic rail disruption within the country.
Energy Wholesale Market Review Week Ending 5th June 2020
Written By Graham Paul
