Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 26th March 2021
It was a largely bullish week for gas and power contracts, with some exceptions in day-ahead power and longer-term seasonal power contracts. As such, day-ahead power fell 24.9% to £47.75/MWh, with strong wind generation throughout periods of the week, coupled with wavering demand. Most seasonal power contracts declined this week, down on average by 0.4%, as summer 21 and winter 21 expanded 2.9% and 0.9% respectively, rising to £56.10/MWh and £64.90/MWh. April 21 gas was up 11.4% at 48.55p/th, and May 21 gas increased 10.2% to 46.00p/th. All seasonal gas contracts boosted this week, up by 3.8% on average, while both summer 21 and winter 21 gas increased 8.9% and 3.5% respectively, lifting to 46.10p/th and 54.50p/th. Brent crude oil prices slipped this week, down 6.4% to average $63.09/bl. Some price support stemmed from supply disruption, with a tanker beached on the Suez Canal impeding transit of other tankers. However, this was ultimately offset by Coronavirus case numbers rising in Europe, which has prompted demand concerns throughout the continent. EU ETS carbon prices fell this week, declining 2.9% to average €41.31/t. Losses on the Brent crude market fed through to carbon prices this week, albeit prices are still relatively buoyant compared against recent months. Similarly, EUA’s slipped on Thursday, primarily driven by coronavirus infection cases rising in Europe, fuelling demand concerns.
Energy Wholesale Market Review Week Ending 26th March 2021.
Energy Wholesale Market Review Week Ending 19th March 2021
It was a largely bearish week for gas and power markets this week. Day-ahead gas fell 6.4% to 43.80p/th, as the system ended the week oversupplied amid high levels of LNG send-out, while Asian LNG prices also fell. Similarly, day-ahead power fell 5.1% to £63.58/MWh, following gas prices lower and forecasts of higher wind output early next week. April 21 gas was down 5.3% at 43.57p/th, and May 21 gas decreased 3.8% to 41.73p/th. All seasonal gas contracts declined this week, down by 2.4% on average. Both summer 21 and winter 21 gas dropped, by 3.9% and 1.8% respectively, to 42.35p/th and 52.66p/th. Most seasonal power contracts also declined this week, down on average by 0.6%. Summer 21 power slid 2.3% to £54.50/MWh, while winter 21 fell 0.7% to £64.32/MWh. Brent crude oil prices dropped 2.1% to average $67.39/bl this week. Prices were weighed upon by news select countries in Europe were opting to delay continued vaccination roll-outs. Consequently, with cases still rising in these countries, threats of further nationwide lockdowns have prompted demand concerns for the market. EU ETS carbon prices rose this week, rising 4.4% to average €42.55/t. EU ETS prices reached a new all-time high on 18 March, up to €43.63/t.
Energy Wholesale Market Review Week Ending 19th March 2021
Energy Wholesale Market Review Week Ending 12th March 2021
Gas and power contracts experienced bullish price movements this week. Day-ahead gas rose 4.7% to 46.80p/th, generally benefitting from reduced temperatures expected at the start of next week and forecast weaker wind generation, resulting in increased gas-for-power demand as a result. Day-ahead power remained static at £67.00/MWh, comparing Friday-on-Friday price movements. Increased wind generation at the weeks start dampened prices before a notable £20.00/MWh surge on Friday. April 21 gas was up 13.7% at 46.03p/th, and May 21 gas increased 12.8% to 43.36p/th. All seasonal gas contracts rose this week, up by 5.9% on average, as summer 21 and winter 21 gas increased 11.7% and 6.8% respectively, lifting to 44.07p/th and 53.65p/th. All seasonal power contracts climbed this week, up on average by 5.6%. Summer 21 and winter 21 power lifted 9.9% and 6.7% to £55.78/MWh and £64.80/MWh, respectively. Brent crude oil prices rebounded this week, up 6.0% to average $68.83/bl. Demand recovery optimism and positive economic forecasts represented the primary drivers for Brent crude oil prices. EU ETS carbon prices rose 8.4% to average €40.77/t. Prices reached a new all-time high of €42.42/t on 11 March.
Energy Wholesale Market Review Week Ending 12th March 2021.
Energy Wholesale Market Review Week Ending 5th March 2021
It was a largely bullish week for gas and power contracts this week. Day-ahead gas rose 9.3% to 44.70p/th, as the system was largely undersupplied for the majority of the week. Day-ahead power similarly rose, lifting 1.6% to £67.00/MWh, following tight supply margins, with periods of correlated low wind output. April 21 gas was up 6.4% at 40.49p/th, and May 21 gas increased 1.2% to 38.43p/th. All seasonal gas contracts rose this week, up by 1.7% on average. Summer 21 and winter 21 gas increased 2.1% and 3.3% respectively, lifting to 39.46p/th and 50.24p/th. All seasonal power contracts climbed this week, up on average by 1.6%, as summer 21 and winter 21 gained 1.5% and 3.2% to £50.75/MWh and £60.75/MWh, respectively. Brent crude oil prices fell this week, down 1.1% to average $64.93/bl. However, prices rebounded on Friday 5 March, reaching a new 14-month high of $68.22/bl, gaining support from OPEC+ agreeing to extend supply cuts out to April. This measure helped to ease market fears over lack of demand and market oversupply, as the market still continues to recover in the aftermath of Coronavirus. EU ETS carbon prices fell this week, declining 1.1% to average €37.61/t. Despite losses this week, carbon prices are still notably higher than at the back-end of 2020.
Energy Wholesale Market Review Week Ending 5th March 2021.
Written By Graham Paul
