Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 31st March 2023
It was a collectively bullish week across most tracked gas and power contracts this week. In support of this, day-ahead gas rose 10.3% to 112.50p/th, following higher gas demand ahead of expected colder temperatures and lower wind output at the beginning of next week. Day-ahead power, however, fell 5.3% to £111.75/MWh, despite the anticipated decrease to wind outturn early next week. April 23 gas was up 8.7% at 112.00p/th, and May 23 gas increased 8.8% to 114.00p/th. All seasonal gas contracts boosted this week, up by 9.1% on average, while both summer 23 and winter 23 gas increased 9.7% and 14.2% respectively, lifting to 117.00p/th and 151.00p/th. Similarly, all seasonal power contracts saw gains this week, up on average by 7.3%, as summer 23 and winter 23 expanded 8.3% and 10.7% respectively, rising to £124.50/MWh and £161.00/MWh. Brent crude experienced a bullish week following a decline in US crude inventory levels and an emerging export halt from the Kurdistan region.
Wholesale price snapshot – Friday-on-Friday
Energy Wholesale Market Review Week Ending 31st March 2023.
Energy Wholesale Market Review Week Ending 24th March 2023
This week, we continued to broadly observe the downturn of wholesale gas and power prices, with the day-ahead contracts being the primary outliers to this trend. Recent milder weather has helped to lower demand, allowing prices to soften. Added to this, the present gas storage level on the continent remains strong, with net injections being seen last week following mild weather. However, day-ahead gas rose 1.0% to 102.00p/th following some periods of system undersupply observed. Similarly, day-ahead power grew 3.5% to £118.00/MWh as forecasted wind outturn levels decrease next week. April 23 gas was down 4.6% at 103.00p/th, and May 23 gas decreased 3.9% to 104.75p/th. Seasonal gas contracts were mixed this week, however, seeing a 1.1% drop on average. Most seasonal power contracts declined this week, down on average by 1.8%, as summer 23 power decreased 5.0% to £115.00/MWh, while winter 23 fell 1.0% to 145.00/MWh.
Wholesale price snapshot – Friday-on-Friday
Energy Wholesale Market Review Week Ending 24th March 2023.
Energy Wholesale Market Review Week Ending 17th March 2023
This week saw a more bearish pricing trend, with most tracked wholesale gas and power contracts in GB registering week-on-week price losses. Ongoing milder weather and increased wind power generation have kept near-term prices lower this week, while longer-dated contracts have taken price direction from wider movements in the commodity markets. Day-ahead gas fell 14.4% to 101.00p/th, following strikes at French refineries and LNG terminals. Day-ahead power rose 14.0% to £114.00/MWh, finding support earlier in the week from news of new reactor defects found at several French nuclear sites. Following wider movements in the commodity markets, April 23 gas was down 8.1% at 108.00p/th, and May 23 gas decreased 8.2% to 109.00p/th. All seasonal gas contracts declined last week, down by 4.4% on average. Summer 23 and winter 23 gas dropped 6.9% and 5.6% respectively, to 111.75p/th and 135.00p/th. All seasonal power contracts also reported losses this week, down on average by 6.7%, as summer 23 power traded 7.6% lower at £121.00/MWh, while winter 23 fell 7.5% to £147.00/MWh.
Wholesale price snapshot – Friday-on-Friday
Energy Wholesale Market Review Week Ending 17th March 2023.
Energy Wholesale Market Review Week Ending 10th March 2023
Most power and gas contracts fell this week, with the recent bearish pricing trend continuing from the start of this year. Day-ahead gas fell 3.3% to 118.0p/th, as gas supply levels in the country increased, despite an extended cold period across GB increasing gas for power demand. Day-ahead power fell 26.5% to £100.0/MWh, with forecasted expectations of higher wind power generation acting to decrease prices. Similarly, April 23 gas was up 2.2% at 117.5p/th, and May 23 gas increased 2.5% to 118.7p/th. Most seasonal gas contracts boosted last week, up by 0.6% on average, with both summer 23 and winter 23 gas increasing 2.6% and 1.4% respectively, lifting to 120.0p/th and 143.0p/th. Most seasonal power contracts boosted this week, up on average by 2.8%, as summer 23 and winter 23 expanded 3.1% and 4.1% respectively, rising to £131.0/MWh and £159.0/MWh.
Wholesale price snapshot
Energy Wholesale Market Review Week Ending 10th March 2023.
Written By Graham Paul
