It was a relatively bearish week again for gas and power contracts this week, with the exception of the day-ahead power contract and near-term peak power. Day-ahead power rose 14.7% to £65.95/MWh, with forecasts of notably reduced wind generation expected next week. Alternatively, Day-ahead gas fell 6.5% to 40.90p/th, following the system being oversupplied for the majority of the week. March 21 gas was down 9.2% at 39.72p/th, and April 21 gas decreased 11.2% to 38.05p/th. All seasonal gas contracts declined this week, down by 2.6% on average, with summer 21 and winter 21 gas falling 6.1% and 3.6% respectively, subsiding to 38.64p/th and 48.65p/th. Most seasonal power contracts followed the same downward, falling on average by 1.2%, with summer 21 power declining 3.6% to £50.00/MWh, while winter 21 lost 1.5% to £58.88/MWh. Brent crude oil rose again this week, up 3.2% to average $65.67/bl. Brent crude broke 12-months highs again this week, climbing to a peak of $67.20/bl on 25 February. The Brent crude market continues to prosper in the wake of the ongoing global vaccination roll-out. Similarly, easing lockdown restrictions across some major economies and positive economic forecasts for recovery all acted to support prices this week. EU ETS carbon prices fell this week, declining 2.6% to average €38.04/t. The EUA December 21 contract closed below the anticipated bullish forecasts, sending a relatively bearish signal across the market.
Baseload electricity
Day-ahead power rose 14.7% to £65.95/MWh, following forecasts of notable reductions in wind generation expected next week.
March 21 power slipped 3.1% at £53/MWh and April 21 power decreased 2.8% to £52.75/MWh.
Q221 power moved 3.5% lower to £50.32/MWh.
The annual April 21 contract lost 2.5% to £54.44/MWh, 29.2% higher than the same time last year (£42.13/MWh).
Forward curve comparison
Annual April Contract
Peak electricity
Day-ahead peak power was up 23.6% to £78.50/MWh, following its baseload counterpart higher.
March 21 peak power gained 0.5% at £61.03/MWh, and April 21 peak power decreased 1.8% to £55.6/MWh.
The annual April 21 peak power lost 1.2% to £61.59/MWh.
This is 28.6% lower than the same time last year (47.88/MWh).
Forward curve comparison
Annual April contract
Seasonal power prices
Seasonal baseload power contracts
Seasonal baseload power curve
Most seasonal power contracts declined this week, down on average by 1.2%.
Summer 21 power decreased 3.6% to £50.00/MWh, while winter 21 fell 1.5% to £58.88/MWh.
Most seasonal peak power contracts declined this week, down 0.7% on average.
Summer 21 and winter 21 peak power dropped 2.3% and 0.3% respectively, falling to £54.74/MWh and £68.44/MWh.
Commodity price movements
Oil and Coal
Carbon
Brent crude oil rose again this week, up 3.2% to average $65.67/bl this week.
Brent crude broke 12-months highs again this week. Prices climbed to a peak of $67.20/bl on 25 February.
The Brent crude market continues to prosper in the wake of the ongoing global vaccination roll-out. Similarly, easing lockdown restrictions across some major economies and positive economic forecasts for recovery all acted to support prices this week.
API 2 coal rose 4.3% from the previous week to average $67.57/t.
EU ETS carbon prices fell this week, declining 2.6% to average €38.04/t.
Prices floundered this week, weighed on by wider market movements.
The EUA December 21 contract closed below the anticipated bullish forecasts anticipated, sending a relatively bearish signal across the market.
However, colder weather expected across Europe next week acted to offset any further substantial losses.
Wholesale price snapshot
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