Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 24th July 2020
Most power and gas contracts moved lower this week, with a few short-term contracts as exceptions. Day-ahead gas rose 0.4% to 13.3p/th as gas imports saw a slight decrease as a result of maintenance on the Nord Stream pipeline. The majority of power contracts decreased this week, although the day-ahead power contract rose 0.8% to £31.5/MWh on forecasts of lower wind generation. August 20 power slipped 0.3% at £30.4/MWh, and September 20 power decreased 1.0% to £32.9/MWh. Seasonal gas contracts declined by 4.0% on average this week, with winter 20 and summer 21 gas dropping 4.9% and 6.9% to 31.9p/th and 29.2p/th, respectively. All seasonal power contracts declined this week, down on average by 2.6%, as winter 20 power decreased 2.8% to £44.55/MWh and summer 21 fell 4.0% to £39.75/MWh. Brent crude oil prices rose by 2.0% this week, averaging $43.87/bl. Oil prices turned bullish on the news that researchers at Oxford University had made positive steps in COVID-19 vaccine trials. Following the EU ETS price hitting a 14-year high the previous week, prices moved 7.8% lower to average €26.93/t as a result of supply-side pressure early in the week.
Energy Wholesale Market Review Week Ending 24th July 2020
Energy Wholesale Market Review Week Ending 17th July 2020
A mixed week for the GB energy market saw losses and gains in various gas and power contracts. Day-ahead gas remained at 13.25p/th despite supply concern following a maintenance period on the Nord Stream pipeline. Day-ahead power rose 1.6% to £31.25/MWh as forecasts of lower wind generation throughout the week looked to support prices. August 20 gas was down 2.5% at 13.43p/th and September 20 gas decreased 9.0% to 15.16p/th. Seasonal gas contracts saw mixed direction this week, ultimately rising by 0.1% on average; the winter 20 gas contract dropped 1.8% to 33.53p/th, while summer 21 gas increased 0.2% to 31.38p/th. Most seasonal power contracts declined this week, down on average by 1.2% as winter 20 power decreased 1.5% to £45.81/MWh, while summer 21 fell 1.4% to £41.4/MWh. Brent crude oil prices held steady this week, averaging $43.01/bl. The markets remain uncertain over future demand for the commodity, with the fears of a second wave of coronavirus potentially limiting future growth in the oil contract. EU ETS carbon prices saw volatile movement this week, reaching a 14-year high of €30.57/t on 13 July, driven by supportive changes to weather and rallying European equity markets.
Energy Wholesale Market Review Week Ending 17th July 2020
Energy Wholesale Market Review Week Ending 10th July 2020
Mixed movements were observed this week for near-term gas and power prices. Day-ahead gas fell 7.0% to 13.25p/th, following an oversupplied system. Day-ahead power rose 18.3% to £30.75/MWh, amid periods of low wind output and power demand recovery following the easing of lockdown restrictions. August 20 gas was down 8.3% at 13.78p/th, and September 20 gas decreased 3.4% to 16.6p/th. All seasonal gas contracts rose this week, up by 2.1% on average, while winter 20 and summer 21 gas increased 3.1% and 1.1% respectively, lifting to 34.14p/th and 31.33p/th. Seasonal power contracts boosted this week, up on average by 2.4%, as winter 20 and summer 21 expanded 2.8% and 1.8% respectively, rising to £46.5/MWh and £42/MWh. EU ETS carbon prices leapt 8.0% this week to average €28.7/t, reaching a near 12-month high amid strong trading activity. Brent crude oil experienced growth this week, rising 2.0% to average $42.7/bl, up from $41.9/bl the previous week.
Energy Wholesale Market Review Week Ending 10th July 2020
Energy Wholesale Market Review Week Ending 3rd July 2020
Nearly all GB gas and power contracts increased this week. Day-ahead power was the only exception, falling 4.6% to £26.00/MWh, with high levels of wind generation towards the end of the week weighing on the contract. The new month-ahead contract (August) gained .3% to £32.10/MWh and the September contract rose 2.0% to £34.99/MWh. Seasonal power contracts climbed 3.6% on average with summer contracts showing the largest gains. Winter 20 power lifted 1.2% to £45.25/MWh, while summer 21 power jumped 4.0% to £41.24/MWh. Day-ahead gas rose 5.9% to 14.25p/th, amid increased demand for both power generation and residential heating. August 20 gas jumped 8.3% to 15.02p/th and the September contract lifted 2.4% to 17.25p/th. Seasonal contracts climbed 3.6% on average, and similar to the power market saw larger gains on the summer contracts. Winter 20 gas edged 2.4% higher to 33.12p/th and the summer 21 contract gained 4.3% to 31.00p/th. Brent crude oil was little changed on average this week with prices slipping 0.2% to average $41.89/bl. API 2 coal prices climbed 3.1% to average $57.84/t this week, reaching a 5-month high of $58.50/t on Thursday. EU ETS carbon continued to reach new multi-month highs this week, gaining 6.4% to average €26.58/t.
Energy Wholesale Market Review Week Ending 3rd July 2020
Written By Graham Paul
