Headlines
Most power and gas contracts rose this week, with day-ahead power as the only exception. Day-ahead gas rose 1.7% to 24.40p/th following an increase gas demand. Day-ahead power fell 5.4% to £33.25/MWh despite reaching £43/MWh midweek as significant fluctuations in wind generation saw prices rise and fall this week. April 20 gas was up 5.1% at 22.19p/th, and May 20 gas increased 1.6% to 22.19p/th. All seasonal gas contracts boosted this week, up by 4.2% on average, while summer 20 and winter 20 gas increased 4.0% and 3.6% to 22.88p/th and 35.63p/th, respectively. All seasonal power contracts lifted this week, up on average by 2.5%, as summer 20 and winter 20 gained 2.1% and 2.5% to £33.45/MWh and £43.22/MWh, respectively. Brent crude oil fell 5.1% to $51.20/bl as the spread of the coronavirus on a global scale continues to impact stock and commodity markets. There were hopes that prices could lift on news of the outcome of the meeting of OPEC and OPEC+ allies in Vienna this week, although it appears that no agreement will be reached on deepening production cuts. API 2 coal saw marginal gains this week, rising 0.6% to average $57.40/t as lower stocks were reported at ARA terminals. EU ETS carbon prices followed oil and lost 1.3% to average €23.74/t this week, following lower demand for allowances in this week’s EU-wide auctions.
Baseload electricity | | |
- Day-ahead power fell 5.4% to £33.25/MWh despite reaching £43/MWh midweek on a significant drop-off in wind generation.
- April 20 power climbed 2.6% to £33.03/MWh and May 20 power increased 4.3% to £34.00/MWh.
| | - Q220 power moved 3.0% higher to £33.47/MWh.
- The Annual April 20 contract rose 2.4% to £38.34/MWh, 26.3% lower than the same time last year (£52.01/MWh).
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Forward curve comparison | | Annual October Contract |
Peak electricity | | |
- Day-ahead peak power was up 0.7% at £38.25/MWh, following its baseload counterpart higher.
- April 20 peak power gained 0.9% to £35.50/MWh, and May 20 peak power increased 0.1% to £36.35/MWh.
| | - The Annual April 20 peak power lost 2.8% to 43.92/MWh.
- This is 24.6% lower than the same time last year (58.24/MWh).
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Forward curve comparison
| | Annual October contract
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Seasonal power prices | | |
Seasonal baseload power contracts | | Seasonal baseload power curve
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- All seasonal power contracts increased this week, up on average by 2.5%.
- Summer 20 and winter 20 expanded 2.1% and 2.5% respectively, rising to £33.45/MWh and £43.22/MWh.
| | - All seasonal peak power contracts also rose this week, up £2.9% on average.
- Summer 20 and winter 20 peak power increased 2.2% and 3.3% respectively, falling to £37.45/MWh and £50.39/MWh.
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Commodity price movements | | |
Oil and Coal | | Carbon
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- Brent crude oil fell 5.1% to average $51.20/bl as oil prices extended two-year lows, falling to $48.18/bl on 6 March.
- The spread of the coronavirus on a global scale continues to impact stock and commodity markets.
- There were hopes that prices could lift on news of the outcome of the meeting of OPEC and OPEC+ allies in Vienna this week.
- Latest reports are that the deal of deeper production cuts could be in jeopardy, with Russia currently refusing to agree additional cuts worth 1.5mn bpd of global supply.
| | - API 2 coal saw marginal gains this week, rising 0.6% to average $57.40/t as lower stocks were reported at ARA terminals.
- EU ETS carbon prices followed oil and lost 1.3% to average €23.74/t this week, following lower demand for allowances in this week’s EU-wide auctions.
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Wholesale price snapshot |