Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 25th June 2021
The majority of power and gas contracts increased this week, with all underlying commodity prices also rising. Day-ahead gas jumped 13.2% to 80.90p/th, driven higher during the week by colder temperatures and restricted flows from Norway. Day-ahead power rose 8.3% to £88.00/MWh, following the gas market higher, with forecasts of weak wind output early next week providing futher support. Longer-dated gas contracts were pushed higher by ongoing concerns surrounding gas storage levels and a tight European gas market, with lower imports from Norway and a lack of LNG deliveries leading to additional withdrawals from storage sites. July 21 gas surged 12.0% to 78.82p/th and August 21 gas climbed 11.7% to 78.72p/th. Seasonal gas contracts rose 7.4% on average, with winter 21 gas gaining 10.2% to 85.51p/th. These price movements fed through to the power market with July 21 power rising 9.2% to £84.00/MWh and the winter 21 contract lifting 7.4% to £90.75/MWh. Brent crude oil gained 1.7% to average $74.85/bl this week, reaching $75.57/bl – its highest level since November 2018 – on 23 June. EU ETS carbon rose 4.2% to average €54.06/t, while UK ETS carbon lifted 1.8% to average £45.90/t.
Energy Wholesale Market Review Week Ending 25th June 2021.
Energy Wholesale Market Review Week Ending 18th June 2021
It was a relatively mixed week for pricing fundamentals across gas and power markets this week, with day-ahead and short-term contracts rising, whilst longer dated seasonal contracts generally retreated. Consequently, day-ahead gas rose 3.0% to 71.48p/th, following increased gas-for-power demand, driven by lower wind output in the week. Day-ahead power rose 6.9% to £81.25/MWh, generally supported by periods of low wind output throughout the week, set to continue into the following week also. July 21 gas was up 1.4% at 70.40p/th, and August 21 gas increased 1.5% to 70.45p/th. Most seasonal gas contracts declined this week, down by 1.5% on average, while winter 21 gas increased 0.1% to 77.60p/th, while summer 22 gas dropped 0.1% to 49.55p/th. Similarly, most seasonal power contracts eased on average by 1.9%, as winter 21 power decreased 1.2% to £84.50/MWh, while summer 22 fell 2.4% to £58.10/MWh. Brent crude oil gained 2.2% to average $73.57/bl this week. Prices reached a fresh two-year high of $74.40/bl on 17 June. EU ETS carbon prices fell 1.3% to average €51.88/t. Similarly, UK ETS carbon dropped 3.2% to average £45.07/t.
Energy Wholesale Market Review Week Ending 18th June 2021.
Energy Wholesale Market Review Week Ending 11th June 2021
Most power and gas contracts rose this week. Day-ahead gas rose 11.0% to 69.40p/th, following periods of system undersupply, combined with lowering temperatures as the week matured, with these expected to reduce further into next week. Day-ahead power rose 2.7% to £76.00/MWh, following gas prices higher on the near curve and benefitting from lowering wind output towards the end of the week. July 21 gas was up 11.7% at 69.45p/th, and August 21 gas increased 12.0% to 69.40p/th. All seasonal gas contracts increased this week, up by 7.2% on average. Winter 21 and summer 22 gas rose 10.3% and 7.8% respectively, lifting to 77.50p/th and 49.60p/th. Most seasonal power contracts moved higher this week, up on average by 2.8%. Winter 21 and summer 22 power lifted 6.2% and 3.5% to £85.50/MWh and £59.50/MWh, respectively. Brent crude oil gained 1.5% to average $71.97/bl, this week. Prices reached a fresh two-year high of $72.65/bl on 11 June. EU ETS carbon prices rose 2.3% to average €52.54/t. Conversely, UK ETS carbon fell 2.1% to average £46.56/t.
Energy Wholesale Market Review Week Ending 11th June 2021.
Energy Wholesale Market Review Week Ending 4th June 2021
Wholesale price movements were mixed this week. Day-ahead gas rose 1.2% to end the week at 62.50p/th, despite ongoing warm temperatures, driven higher towards the end of the week on forecasts of increased gas-for-power demand. August 21 gas lost 4.6% to 61.99p/th, while winter 21 gas boosted 2.8% to 70.29p/th. Day-ahead power went up 1.4% to £74.00/MWh, amid forecasts of low wind output early next week and with higher gas prices. Opposing gas, August 21 power inched up 0.1% to £72.55/MWh, while winter 22 power traded 2.2% lower at £67.00/MWh. In commodities, Brent crude oil gained 3.5% to average $70.91/bl, reaching a fresh two-year high of $71.64/bl on Friday. Prices found support this week from signals of a healthier demand outlook, with OPEC+ members agreeing to go ahead with plans to gradually increase output in July. Additionally, the EIA reported a fall in crude stocks of 5.08mn bbl in the week ending 28 May. EU ETS carbon dropped 2.4% to average €51.37/t, weighed on by warmer temperatures and the second UK ETS auction which outturned at £44.85/t on Wednesday.
Energy Wholesale Market Review Week Ending 4th June 2021.
Written By Graham Paul
