The majority of gas and power contracts decreased this week. The day-ahead contracts were an exception with day-ahead gas jumping 96.0% to 98.00p/th. Day-ahead gas was supported early in the week by lower levels of LNG send-out and restricted Norwegian supply as a result of maintenance. Month-ahead gas lifted 2.3% to 158.55p/th while the July contract slipped 3.0% to 176.48p/th. Seasonal gas contracts lost 8.9% on average. Winter 22 gas fell 7.0% to 234.70p/th and summer 23 gas dropped 9.8% to 165.05p/th. Day-ahead power gained 50.0% to £135.00/MWh, supported by higher gas prices and forecasts of low wind generation on Monday. June 22 power lost 2.8% to £166.16/MWh and July 22 power declined 4.2% to £181.06/MWh. Seasonal power contracts dropped 4.2% on average. Winter 22 power fell 3.9% to £235.75/MWh while the summer 23 contract lost 5.0% to £161.50/MWh. Brent crude oil climbed 4.7% to average $111.91/bl, driven higher by the prospect of an EU embargo on Russian oil. EU ETS carbon lost 1.5% to average €86.88/t, weighed on by weak auction results and an EU proposal to sell more than 200mn EUAs from the Market Stability Reserve. Meanwhile, UK ETS carbon fell 3.3% to average £83.75/t.
Baseload electricity
Day-ahead power jumped 50.0% to £135.00/MWh, supported by higher gas prices and forecasts of low wind generation on Monday.
June 22 power lost 2.8% to £166.16/MWh and July 22 power decreased 4.2% to £181.06/MWh.
Q322 power slipped 1.8% to £204.56/MWh.
The annual October 22 contract lost 4.3% to £198.63/MWh, but was 220.7% higher than the same time last year (£61.93/MWh).
Forward Curve Comparison
Annual April Contract
Peak electricity
Day-ahead peak power climbed 31.8% to £145.00/MWh.
June 22 peak power fell 7.8% to £178.05/MWh, and July 22 peak power dropped 8.6% to £195.00/MWh.
The annual October 22 peak power contract lost 6.9% to £241.63/MWh.
This is 243.6% higher than the same time last year (£70.33/MWh).
Forward curve comparison
Annual April contract
Seasonal power prices
Seasonal baseload power contracts
Seasonal baseload power curve
Seasonal power contracts dropped 4.2% on average this week.
Winter 22 power fell 3.9% to £235.75/MWh while the summer 23 contract lost 5.0% to £161.50/MWh.
Seasonal peak power contracts lost 5.0% on average, this week.
Winter 22 peak power dropped 7.1% to £297.00/MWh and summer 23 peak power fell 6.5% to £232.45/MWh.
Commodity price movements
Oil and Coal
Carbon
Brent crude oil climbed 4.7% to average $111.91/bl, this week.
Prices were predominantly driven higher by the prospect of an EU embargo on Russian oil.
In contrast, concerns over slowing economic growth provided some downward pressure on prices towards the end of the week.
EU ETS carbon lost 1.5% to average €86.88/t, weighed on by weak auction results and an EU proposal to sell more than 200mn EUAs from the Market Stability Reserve.
In addition, EEX announced that 2022 EUA auction volumes will be reduced by around 3%, citing a previous calculation error.
Meanwhile, UK ETS carbon fell 3.3% to average £83.75/t.
Wholesale price snapshot
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