Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 26th November 2021
The volatility in near-term pricing across gas and power prices was evident this week, with significant gains made, particularly in baseload and peak power contracts. Day-ahead gas rose 1.4% to 225.00p/th, following periods of much colder weather making its way from the continent and across the UK. Day-ahead power jumped 84.8% to £425.00/MWh, with tight system margins expected on Monday amid notably low wind generation. December 21 gas slipped 0.2% to 224.62p/th, and January 22 gas decreased 0.5% to 230.37p/th. Most seasonal gas contracts increased this week, up by 2.9% on average, as summer 22 and winter 22 gas climbed 2.0% and 2.5% respectively, lifting to 110.90p/th and 114.10p/th. All seasonal power contracts rose this week, up on average by 5.3%. Summer 22 and winter 22 gained 3.2% and 7.5% to £114.85/MWh and £122.50/MWh, respectively.
Wholesale price snapshot
Energy Wholesale Market Review Week Ending 26th November 2021.
Energy Wholesale Market Review Week Ending 19th November 2021
This week represented yet another bullish week for gas and power prices, in what continues to be a particularly volatile period for wholesale energy prices. Day-ahead gas rose 25.4% to 222.00p/th, with a combination of market drivers pushing up prices, amid news that the German regulator temporarily suspending certification for the Nordstream 2 pipeline, underpinned by an already tight gas market throughout Europe. Conversely, day-ahead power fell 8.0% to £230.00/MWh, with stronger periods of wind generation seen in the week, despite significant price rises seen on 19 November (up £44.00/MWh from 18 November). December 21 gas was up 16.0% at 225.13p/th, and January 22 gas increased 16.9% to 231.62p/th. Most seasonal gas contracts boosted this week, up by 4.0% on average, while both summer 22 and winter 22 gas increased 6.6% and 6.6% respectively, lifting to 108.75p/th and 111.37p/th. All seasonal power contracts rose this week, up on average by 5.5%, as summer 22 and winter 22 expanded 7.5% and 6.5% respectively, rising to £111.25/MWh and £113.99/MWh.
Wholesale price snapshot
Energy Wholesale Market Review Week Ending 19th November 2021.
Energy Wholesale Market Review Week Ending 12th November 2021
This week represented yet another particularly volatile week for wholesale market prices, with significant daily swings in price, and varying movements further along the forward curve. Day-ahead gas fell 1.7% to 177.00p/th, following increased Russian gas flows into via Mallnow and Velke Kapusany, albeit significant volumes have yet to fully impression on the European gas market. Day-ahead power rose 46.2% to £250/MWh, with bullish price movements seen on Friday 12 November, in anticipation of low wind outturn at the front end of next week, Monday in particular. December 21 gas was up 0.7% at 194.00p/th, and January 22 gas increased 1.4% to 198.06p/th. Most seasonal gas contracts declined last week, down by 2.4% on average, while both summer 22 and winter 22 gas dropped 3.7% and 3.9% respectively, subsiding to 101.98p/th and 104.50p/th. Most seasonal power contracts declined this week, down on average by 0.8%, as summer 22 power decreased 2.4% to £103.50/MWh, while winter 22 fell 1.2% to £107.00/MWh.
Wholesale price snapshot
Energy Wholesale Market Review Week Ending 12th November 2021.
Energy Wholesale Market Review Week Ending 5th November 2021
It was a relatively mixed week again for gas and power pricing fundamentals this week, with the most pronounced upwards trends seen on near-term contracts, with seasonal contracts generally easing slightly. In support of this, day-ahead gas rose 9.1% to 180.00p/th, rebounding against losses observed from the week prior. Gas prices this week primarily benefitted from select periods of increased heating and gas-for-power demand. Day-ahead power rose 30.5% to £171.00/MWh, drawing on gains seen in near-term gas contracts, along with periods of lower wind outturn. December 21 gas was up 7.0% at 192.68p/th, and January 22 gas increased 5.2% to 195.31p/th. Most seasonal gas contracts declined last week, down by 4.4% on average, while both summer 22 and winter 22 gas dropped 1.5% and 1.7% respectively, subsiding to 105.95p/th and 108.69p/th. Most seasonal power contracts declined this week, down on average by 0.6%, as summer 22 power decreased 1.2% to £106.00/MWh, while winter 22 fell 1.6% to £108.25/MWh.
Wholesale Price Snapshot
Energy Wholesale Market Review Week Ending 5th November 2021.
Written By Graham Paul
