Most power and gas contracts fell mixed this week, though a few rises were seen in future winter contracts. Day-ahead gas fell 16.0% to a fresh 10-year low of 16.00p/th on forecasts of decreasing consumption levels, and pushed lower by expectations of very mild weather next week. Day-ahead power fell 36.2% to a new all-time low of £18.50/MWh with falls the result of similar reasoning to that of gas. May 20 gas was down 11.7% at 16.17p/th, and June 20 gas decreased 8.9% to 16.99p/th. All seasonal gas contracts declined this week, down by 1.5% on average, while both winter 20 and summer 21 gas dropped 0.9% and 1.6% respectively, subsiding to 32.65p/th and 29.23p/th. Most seasonal power contracts boosted this week, up on average by 0.2%, as winter 20 power expanded 0.2% to £39.12/MWh, while summer 21 remained at £35.00/MWh. Brent crude oil fell by 2.1% to $26.23/bl over reports that US and Russia were looking to agree a deal to stabilise oil prices. Brent oil prices then reported their biggest daily gain on record on 2 April following the announcement by Donald Trump that Saudi Arabia and Russia could announce a major cut to oil production. EU ETS carbon gained by 6.2% to €17.33/t, reflecting the rise in the oil market. API 2 coal reversed gains seen in recent weeks, falling 4.5% to average $55.06/t, as the effect of lowered demand begins to take effect on the coal market.
Day-ahead power fell 36.2% to a record low of £18.50/MWh following forecasts of low demand as a result of lockdown measures and seasonally high temperatures.
May 20 power slipped 7.8% at £24.50/MWh and June 20 power decreased 4.5% to £26.00/MWh.
Q320 power moved 1.0% lower to £29.00/MWh.
The Annual October 20 contract rose 0.1% to £37.06/MWh, 30.5% lower than the same time last year (£53.32/MWh).
Forward curve comparison
Annual October Contract
Day-ahead peak power was down 0.2% to £29.95/MWh, reflecting its baseload counterpart.
May 20 peak power Declined 6.1% at £27.89/MWh, and June 20 peak power decreased 4.1% to £29.60/MWh.
The Annual October 20 peak power lost 2.3% to 42.00/MWh.
This is 29.4% lower than the same time last year (59.53/MWh).
Forward curve comparison
Annual October contract
Seasonal power prices
Seasonal baseload power contracts
Seasonal baseload power curve
Seasonal power contracts were mixed this week, but rose on average by 0.2%.
winter 20 power rose 0.2% to £39.12/MWh, while summer 21 was the same at £35.00/MWh.
Seasonal peak power contracts were also mixed this week, moving down £1.4% on average.
Winter 20 and summer 21 peak power dropped 2.4% and 2.2% respectively, falling to £45.17/MWh and £38.83/MWh.
Commodity price movements
Oil and Coal
Brent crude oil fell 2.1% to average $26.23/bl this week, though some strong gains were seen late in the week.
Opening at a fresh 17-year low on 30 March, oil prices remained low on lack of any bullish indicators.
Prices began to rise on 31 March over reports that US and Russia were looking to agree a deal to stabilise oil prices.
Brent oil prices then reported their biggest daily gain on record on 2 April following the announcement by Donald Trump that Saudi Arabia and Russia could announce a major cut to oil production.
The President of the United States tweeted that the cuts by both countries could amount to close to 10mn bpd, possibly more.
API 2 coal reversed gains seen in recent weeks, falling 4.5% to average $55.06/t, as the effect of lowered demand begins to take effect on the coal market.
Record-low LNG prices has not supported coal prices; Japan and South Korea (two of the world’s largest importers) will like look buy less coal in coming weeks as a result of cheap LNG.
EU ETS carbon prices remained low this week, but rose 6.2% to average €17.33/t. As price movements continue to follow those in oil.
Lockdown restrictions in many EU countries has seen volume demand at EUA auctions drop off in recent weeks.
Wholesale price snapshot
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