Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 25th September 2020
Most gas contracts rose this week, supported by a second consecutive weekly rise in oil prices and an increase in gas-for-power demand, the latter owing to a steady reduction in temperature throughout the week. October 20 gas lifted 5.9% to 30.87p/th, and November 20 gas increased 1.7% to 36.06p/th. Seasonal gas contracts differed to their short term counterparts, predominately falling – by an average of 0.8%. Summer 21 gas dropped 0.5% to 33.18p/th. Conversely, most power contracts fell, attributed to strong wind generation throughout the week, up on the lows experienced in the previous week. Near-term power contracts also struggled to find much support, with the October 20 power slipping 0.3% at £42.75/MWh, and November 20 power declining 1.6% to £52.13/MWh. Most seasonal power contracts declined this week, down on average by 1.2%. Winter 20 power decreased 0.8% to £50.57/MWh, while summer 21 fell 2.5% to £43.16/MWh. The EU ETS carbon price flipped downwards this week, declining 8.0% to average €26.90/t, with weak demand as a result of the on-going pandemic coupled with an increased supply of EUA’s weighing on prices significantly. Brent crude oil rose by 1.5% to average $41.89/bl, finding support from market sentiment with global consumption returning to pre-COVID levels, despite news of the fresh coronavirus restrictions.
Energy Wholesale Market Review Week Ending 25th September 2020
Energy Wholesale Market Review Week Ending 18th September 2020
All gas contracts rose this week, supported by a rise in oil prices and an increase in gas-for-power demand, the latter owing to a significant reduction in wind speeds this week. October 20 gas was up 4.6% to 29.16p/th, and November 20 gas increased 1.3% to 35.47p/th. Seasonal gas contracts out to summer 22 lifted 1.5% on average, with the winter 20 contract up 1.5% to 37.50p/th. Similarly, most power contracts rose, owing to an underlying rise in gas and commodity markets. Near-term power contracts saw additional support from very low wind speeds and high continental power prices, which caused a surge in day-ahead and within-day prices mid-week. Seasonal power contracts increased 1.0% on average, with winter 20 and summer 21 prices expanding 1.2% and 2.7% respectively, to £51.00/MWh and £44.25/MWh. The EU ETS carbon price rebounded upwards this week, boosting 7.2% to average €29.23/t, as the European Commission moved forwards on setting more stringent 2030 climate targets. Brent crude oil similarly rose by 1.1% to average $41.27/bl, amid OPEC encouraging its members to stick with their production quotas despite low prices.
Energy Wholesale Market Review Week Ending 18th September 2020
Energy Wholesale Market Review Week Ending 11th September 2020
Most power and gas contracts fell this week, with day-ahead power contracts being the exception to this trend. Day-ahead gas fell 7.4% to 27.60p/th, from the eight-month high seen last week, with increased renewables and nuclear output seeing lower gas consumption for power generation. Day-ahead power rose 12.2% to £48.25/MWh, driven by forecasts of lower wind output for the start of next week. October 20 gas saw a notable drop and was down 10.1% to 27.89p/th. Most seasonal gas contracts followed oil prices lower this week, down by 3.0% on average, with the winter 20 contact dropping 5.4% to 36.93p/th. Seasonal power contracts slipped 0.9% on average, as prices were weighed on lower gas and EU ETS carbon prices. Winter 20 power decreased 1.4% to £50.40/MWh. International commodities saw collective downward movements this week. Brent crude oil prices declined by over 9% to average $40.81/bl, representing lows not experienced since mid-June. Similarly, the EU ETS carbon price dropped amid increased auction volumes, averaging €27.27/t.
Energy Wholesale Market Review Week Ending 11th September 2020
Energy Wholesale Market Review Week Ending 4th September 2020
Power and gas contracts saw mixed movements this week, with most near-term contracts rising and some seasonal contracts reducing. Day-ahead gas rose 12.5% to 29.80p/th, an eight-month high, continuing to find support from increased gas-for-power demand and ongoing maintenance on the Forties pipeline system. Day-ahead power fell 9.0% to £43.00/MWh, due to rising levels of wind output at the end of the week, but despite a fall in its gas counterpart. October 20 gas saw a large rise amid tightening LNG supplies for this coming Autumn, up 6.5% to 31.04p/th. Most seasonal gas contracts declined this week, down by 1.1% on average. An exception was winter 20 gas which increased 1.0% to 39.05p/th, but summer 21 gas slid 1.5% to 33.68p/th. Most seasonal power contracts followed their gas counterparts, with contracts falling on average by 1.1%. Winter 20 power expanded 0.2% to £51.09/MWh, while summer 21 fell 0.9% to £44.15/MWh. International commodities saw mixed, mostly relatively small, movements. Brent crude oil declined marginally while EU ETS carbon prices extended the previous weeks gains and at times went above €29/t.
Energy Wholesale Market Review Week Ending 4th September 2020
Written By Graham Paul
