Energy Wholesale Market Review, 11 October 2019
Headlines
Most near-term gas and power contracts decreased this week; however, long-term contracts moved higher. Day-ahead gas fell 28.1% to 23.0p/th, with warmer than expected temperatures resulting in weaker gas demand. In addition, the arrival of three LNG tankers kept the system comfortably supplied. This also weighed on the month-ahead contract, which slipped 1.4% to 42.4p/th. Further along the curve, summer 20 gas rose 2.8% to 44.3p/th and winter 20 gas climbed 2.7% to 53.7p/th. Day-ahead power lost 4.0% to £41.0/MWh, amid strong levels of wind generation throughout the week. November 19 power dropped 0.9% to £49.1/MWh. Seasonal power contracts followed their gas counterparts with summer 20 power lifting 2.0% to £47.7/MWh and winter 20 power gaining 1.8% to £54.8/MWh. Brent crude oil slipped 0.7% to average $58.7/bl, pressured by ongoing concerns of slowing global demand growth and a larger than expected rise in US crude stocks. API 2 coal gained 2.9% to average $67.6/t, driven by lower domestic coal production and low coal stocks in India and a decrease in gas-fired generation in Germany. EU ETS carbon fell 5.2% to average €23.0/t, amid lower thermal generation as a result of strong wind output and ongoing uncertainty surrounding Brexit and US-China trade talks.
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Forward curve comparison
| Annual October Contract
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Forward curve comparison
| Annual October contract
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Seasonal baseload power contracts
| Seasonal baseload power curve
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Oil and Coal
| Carbon
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Wholesale price snaphot
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