Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 17th December 2021
This week saw strong bullish price movements in both gas and baseload power contracts. Day-ahead gas rose 33.3% to 340.00p/th, following rising demand and renewed concerns surrounding Russian gas deliveries via the Nord Stream 2 pipeline. Day-ahead power jumped up 68.1% to £400.00/MWh, drawing on bullish momentum seen in near-term gas contracts and exacerbated by low wind output in the week, a trend set to continue into the coming week. Front month gas contracts experienced strong gains, with January 22 gas up 30.9% at 339.67p/th, and February 22 gas increased 29.9% to 338.97p/th. Most seasonal gas contracts boosted this week, up by 10.6% on average, with summer 22 and winter 22 gas increasing 22.1% and 21.3% respectively, lifting to 198.06p/th and 201.28p/th. All seasonal baseload power contracts reported gains this week, up on average by 11.0%, as summer 22 and winter 22 expanded 18.8% and 21.3% respectively, rising to £183.00/MWh and £194.00/MWh.
Wholesale price snapshot
Energy Wholesale Market Review Week Ending 17th December 2021.
Energy Wholesale Market Review Week Ending 10th December 2021
Generally, wholesale energy prices underwent another strong week of price growth, with gains across all contracts in gas and baseload power, the outlier being the summer 24 gas contract. Day-ahead gas rose 9.9% to 255.00p/th, following select periods of system undersupply and lower Norwegian imports, after an unplaned outage at Troll gas field. Similarly, day-ahead power rose 4.8% to £238.00/MWh, taking direction from strong gains seen across the board in near-term gas contracts. January 22 gas was up 11.1% at 259.50p/th, and February 22 gas increased 11.4% to 261.00p/th. The majority of seasonal gas contracts saw gains this week, rising by 17.2% on average, while both summer 22 and winter 22 gas increased 37.3% and 38.0% respectively, lifting to 162.25p/th and 166.00p/th. All seasonal power contracts grew this week, up on average by 17.1%, as summer 22 and winter 22 expanded 29.7% and 29.0% respectively, rising to £154.00/MWh and £160.00/MWh.
Wholesale price snapshot
Energy Wholesale Market Review Week Ending 10th December 2021.
Energy Wholesale Market Review Week Ending 3rd December 2021
This week had yet another predominately bullish stance, with strong gains made across most gas contracts, including further along the forward curve. Similarly, power prices enjoyed consistent growth from the week previous, with losses on the day-ahead power contract the notable outlier. Day-ahead gas rose 3.1% to 232.00p/th, gaining support from the continuation of colder tempeartures bringing with it higher heating demand. In contrast, day-ahead power fell 46.6% to £227.00/MWh, with a strong and relatively consistent week of wind generation. January 22 gas was up 1.4% at 233.50p/th, and February 22 gas increased 2.9% to 234.25p/th. Most seasonal gas contracts boosted last week, up by 3.5% on average, while both summer 22 and winter 22 gas increased 6.6% and 5.4% respectively, lifting to 118.20p/th and 120.25p/th. Similar movements were seen for seasonal power contracts, rising on average by 2.4%, as summer 22 and winter 22 expanded 3.4% and 1.2% respectively, growing to £118.75/MWh and £124.00/MWh.
Wholesale price snapshot
Written By Graham Paul
