Most power and gas contracts moved lower this week, with a few short-term contracts as exceptions. Day-ahead gas rose 0.4% to 13.3p/th as gas imports saw a slight decrease as a result of maintenance on the Nord Stream pipeline. The majority of power contracts decreased this week, although the day-ahead power contract rose 0.8% to £31.5/MWh on forecasts of lower wind generation. August 20 power slipped 0.3% at £30.4/MWh, and September 20 power decreased 1.0% to £32.9/MWh. Seasonal gas contracts declined by 4.0% on average this week, with winter 20 and summer 21 gas dropping 4.9% and 6.9% to 31.9p/th and 29.2p/th, respectively. All seasonal power contracts declined this week, down on average by 2.6%, as winter 20 power decreased 2.8% to £44.55/MWh and summer 21 fell 4.0% to £39.75/MWh. Brent crude oil prices rose by 2.0% this week, averaging $43.87/bl. Oil prices turned bullish on the news that researchers at Oxford University had made positive steps in COVID-19 vaccine trials. Following the EU ETS price hitting a 14-year high the previous week, prices moved 7.8% lower to average €26.93/t as a result of supply-side pressure early in the week.
Baseload electricity
Day-ahead power rose 0.8% to £31.5/MWh following lower wind generation forecasts.
August 20 power slipped 0.3% to £30.4/MWh and September 20 power decreased 1.0% to £32.9/MWh.
Q420 power moved 3.5% lower to £41.8/MWh.
The annual October 20 contract lost 3.3% to £42.15/MWh, 20.0% lower than the same time last year (£52.66/MWh).
Forward curve comparison
Annual October Contract
Peak electricity
Day-ahead peak power was down 3.8% at £31.75/MWh.
August 20 peak power declined 6.8% to £34.6/MWh, and September 20 peak power decreased 9.8% to £37.28/MWh.
The annual October 20 peak power contract lost 2.5% to £47.99/MWh.
This is 18.7% lower than the same time last year (59.04/MWh).
Forward curve comparison
Annual October contract
Seasonal power prices
Seasonal baseload power contracts
Seasonal baseload power curve
All seasonal power contracts declined this week, down on average by 2.6%.
Winter 20 power decreased 2.8% to £44.55/MWh, while summer 21 fell 4.0% to £39.75/MWh.
All seasonal peak power contracts declined this week, down 1.9% on average.
Winter 20 and summer 21 peak power dropped 1.8% and 3.3% respectively, falling to £52.07/MWh and £43.9/MWh.
Commodity price movements
Oil and Coal
Carbon
Brent crude oil prices rose by 2.0% this week, averaging $43.87/bl.
Oil prices turned bullish on the news that researchers at Oxford University had made positive steps in COVID-19 vaccine trials.
The news pushed the Brent price to more than a four-month high of $44.16/bl on 21 July.
Oil prices lost some momentum in the middle of the week, as high US jobless numbers and the news that congress may not agree on a US stimulus package negatively affected both the Brent and WTI price.
Prices closed the week marginally higher than they opened, supported by a weak US dollar but weighed upon by increasing US-China tensions.
API 2 coal prices rose by 1.3% this week to average $60.20/t, as demand for the commodity continues to increase following the easing of lockdown measures around the world.
Following the EU ETS price hitting a 14-year high the previous week, prices moved 7.8% lower to average €26.93/t as a result of supply-side pressure early in the week.
Prices lifted slightly midweek in reacting to new stimulus measures announced by European Central Bank.
Wholesale price snapshot
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