Headlines
The bullish picture for gas and power markets generally continued this week, with most contracts rising or holding onto recent gains. Subsequently, day-ahead gas rose 0.9% to 110.00p/th, supported by a back-drop of low gas in storage across Europe and the UK. Day-ahead power looking at Friday-on-Friday price movements, remained unchanged at £105/MWh, maintaining recent highs, continuing to take direction from record highs in near-term gas contracts. September 21 gas was up 1.8% at 113.18p/th, and October 21 gas increased 2.6% to 115.33p/th. All seasonal gas contracts grew this week, up by 5.1% on average, with both winter 21 and summer 22 gas rising 3.9% and 7.9% respectively, lifting to 115.91p/th and 71.89p/th. Most seasonal power contracts boosted this week, up on average by 3.5%, as winter 21 and summer 22 expanded 1.1% and 5.7% respectively, increasing to £113.25/MWh and £78.25/MWh. Brent crude oil slipped for the second consecutive week this week. As such, prices averaged 3.2% lower than the previous week at $70.19/bl. The most notable price set-backs were observed at the week’s start, driven by news of increased travel restrictions in China amid rising COVID-19 cases, fuelling demand recovery fears. Carbon markets rose for the third consecutive week, building on strong recorded gains. Subsequently the UK ETS rose 3.1% to £48.09/t, with the EU ETS sharing these bullish price movements, up 2.6% to €56.77/t.
| Baseload electricity | | |
- Day-ahead power remained unchanged at £105/MWh, holding onto recent highs, continuing to take direction from high gas prices.
- September 21 power slipped 0.7% at £109.25/MWh and October 21 power increased 6.9% to £111.75/MWh.
| | - Q421 power held at £115/MWh.
- The annual October 21 contract rose 3.0% to £95.75/MWh, 111.9% higher than the same time last year (£45.18/MWh).
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Forward curve comparison 
| | Annual April Contract 
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| Peak electricity | | |
- Day-ahead peak power was up 0.9% to £110.00/MWh, following gains from its baseload counterpart.
- September 21 peak power declined 2.9% at £109.65/MWh, and October 21 peak power decreased 5.2% to £108.85/MWh.
| | - The annual October 21 peak power lost 2.4% to £95.63/MWh.
- This is 86.8% lower than the same time last year (51.19/MWh).
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Forward curve comparison 
| | Annual April contract 
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| Seasonal power prices | | |
Seasonal baseload power contracts 
| | Seasonal baseload power curve 
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- Most seasonal power contracts rose this week, up on average by 3.5%, highlighting notable backwardation.
- Winter 21 and summer 22 expanded 1.1% and 5.7% respectively, growing to £113.25/MWh and £78.25/MWh.
| | - Most seasonal peak power contracts declined this week, down 1.5% on average.
- Winter 21 gas dropped 5.2% to £113.25/MWh, while summer 22 peak power increased 2.0% to £78.00/MWh.
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| Commodity price movements | | |
Oil and Coal 
| | Carbon 
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- Brent crude oil slipped for the second consecutive week. As such, prices averaged 3.2% lower than the previous week at $70.19/bl.
- The most notable price set-backs were observed at the week’s start, driven by news of increased travel restrictions in China amid rising COVID-19 cases, fuelling demand recovery fears.
- Sustained losses to prices this week were capped by support from OPEC+ towards the week’s end however, with confirmation the group have kept their original demand forecasts unchanged despite these demand concerns.
| | - Carbon markets rose for the third consecutive week, building on strong recorded gains. Subsequently the UK ETS rose 3.1% to £48.09/t, with the EU ETS sharing these bullish price movements, up 2.6% to €56.77/t.
- The UK ETS also reached a two-month high on 12 August, sitting at £49.15/t.
- Bullish supporting trends across carbon markets remain relatively consistent. Tighter gas markets, across North-West Europe and the UK bolster prices. Similarly, lowering auction volumes in August continue to lend support, driving increased competition for limited EUA’s.
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Wholesale price snapshot 
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