Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 28th August 2020
Most power and gas contracts rose significantly this week, continuing rises seen in recent weeks. Day-ahead gas rose 32.5% to 26.50p/th as a result of increased gas for power demand and an outage to the Forties pipeline. Day-ahead power rose 15.2% to £47.25/MWh on decreasing wind generation throughout the latter stages of the week. September 20 gas was up 26.9% at 26.95p/th, and October 20 gas increased 19.6% to 29.15p/th. All seasonal gas contracts boosted this week, up by 7.7% on average, while both winter 20 and summer 21 gas increased 9.4% and 11.0% respectively, lifting to 38.65p/th and 34.20p/th. All seasonal power contracts followed the gas markets higher, up on average by 6.8%, as winter 20 and summer 21 expanded 8.3% and 8.6% respectively, rising to £51.00/MWh and £44.55/MWh. Brent crude oil prices remained relatively unchanged last week averaging $45.37/bl, with prices now settled following recent spikes. Market oversupply issues have been overshadowed this week amongst growing concern surrounding Hurricane Laura, which has this week been upgraded to a Category 4.
Energy Wholesale Market Review Week Ending 28th August 2020
Energy Wholesale Market Review Week Ending 21st August 2020
Most power and gas contracts saw gains this week, opposing the trend seen in the previous few weeks. Day-ahead gas rose 8.1% to 20.00p/th ahead of scheduled maintenance to fields on the UKCS at the start of next week. Day-ahead power rose 10.1% to £41/MWh on lower wind generation forecasts at the start of next week. September 20 gas was up 3.1% at 21.24p/th, and October 20 gas increased 5.3% to 24.38p/th. All seasonal gas contracts rose this week, up by 0.8% on average, while winter 20 and summer 21 gas increased 3.3% and 2.7% respectively, lifting to 35.33p/th and 30.82p/th. All seasonal power contracts increased this week, up on average by 1.6%, as winter 20 and summer 21 climbed 2.1% and 2.3% respectively, rising to £47.10/MWh and £41.02/MWh. Brent crude oil prices remained unchanged averaging just over $45.04/bl this week, amid the easing of lockdown restrictions with a slow COVID-19 recovery. Prices have plateaued signalling the end to a near five-month high with some major crude oil producers seeking to limit supply.
Energy Wholesale Market Review Week Ending 21st August 2020
Energy Wholesale Market Review Week Ending 14th August 2020
Most power and gas contracts fell this week. Day-ahead gas dropped 3.4% to 18.5p/th following general oversupply on the NTS as both the Langeled pipeline and Barrow terminal saw higher flows this week. Day-ahead power was an exception and rose 8.1% to £37.25/MWh on forecasts of lower wind generation towards the start of next week. September 20 gas was down 4.7% at 20.60p/th, and October 20 gas decreased 2.9% to 23.15p/th. All seasonal gas contracts declined last week, down by 0.7% on average. Winter 20 and summer 21 gas dropped 0.2% and 0.8% respectively, subsiding to 34.2p/th and 30p/th. All seasonal baseload power contracts declined this week, down on average by 2.0%, as winter 20 power decreased 2.0% to £46.15/MWh, while summer 21 fell 2.2% to £40.10/MWh. Brent crude oil prices rose by 1.7% to average $45.07/bl this week, continuing last week’s trend. Prices were supported mid-week by another weekly decline in US crude inventory levels. However, the decision by OPEC+ producers to ease production cuts at the start of August provided downward pressure to prices. The EU ETS price reversed the previous week’s gains, falling 1.3% to average €26.17/t, as a result of weaker demand at EUA auctions.
Energy Wholesale Market Review Week Ending 14th August 2020
Energy Wholesale Market Review Week Ending 7th August 2020
Breaking the trend seen in the last two weeks, gas and power contracts in the GB market saw gains this week, as the Bank of England forecasted that the long-term impacts of the coronavirus pandemic might not be as bad as initially thought. The largest movement was seen in the day-ahead gas contract, which rose 47.3% to 19.15p/th following increases in gas-for-power demand forecasts. Day-ahead power fell 1.6% to £34.45/MWh, with strong wind generation over the first half of the week. September 20 gas was up 38.2% at 21.61p/th, and October 20 gas increased 26.3% to 23.85p/th. All seasonal gas contracts increased this week, up by 5.3% on average. Winter 20 and summer 21 gas increased 8.9% and 7.2% respectively, lifting to 34.28p/th and 30.25p/th. Seasonal power contracts gained 3.5% on average. Winter 20 and summer 21 power climbed 5.3% and 5.1% to £47.1/MWh and £41.0/MWh, respectively. Brent crude oil rose 2.0% to average $44.31/bl this week, reaching a near-five month midweek. The decision taken by OPEC+ countries in July to begin easing oil production began to take affect this week, with the oil market initially moving lower at the turn of the month.
Energy Wholesale Market Review Week Ending 7th August 2020
Written By Graham Paul
