All commodities fell this week, with coal and oil ending multi-week climbs. Pressure from curtailing commodity prices, coupled with an increase in wind output and warmer temperatures, cause wholesale power and gas contracts to retreat, with many also hitting lows on 11 October. However, the recent high prices of gas have attracted several LNG tankers to the UK, with cargoes from the US and Qatar arriving this week. Contracts across the curve fell this week, with day-ahead power falling 3.5% to £63.9/MWh amid a surge in wind generation. Seasonal power contracts were down 6.5% on average week-on-week, as lower commodity prices pressured contracts along the curve. Gas contracts along the curve fell week-on-week, with day-ahead gas dropping 7.6% to end the week at 64.8p/th as temperatures are forecast to remain near seasonal normal levels. The weekly average Brent crude oil price fell for the first time in two months, averaging $83.1/bl. Prices fell below $80.5/bl at the end of the week as the US announced it would discuss potential waivers for Iranian imports and as the US stock market fell for a sixth consecutive day amid a slowdown in the global economy and the US-China trade dispute. API 2 coal also fell, dropping for the first time in 10-weeks to average $96.7/t after hitting a five-week low of $94.0/t on 11 October. EU ETS carbon prices reversed the previous week’s gains, losing 2.6% to average €20.6/t. Prices plummeted to their lowest since 20 August, dropping to €18.3/t on 11 October.
Baseload electricity | ||
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Forward curve comparison | Annual October Contract | |
Peak electricity | ||
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Forward curve comparison | Annual October Contract | |
Seasonal power prices | ||
Seasonal baseload power contracts | Seasonal baseload power curve
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Commodity price movements | ||
Oil and Coal | Carbon | |
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Wholesale price snapshot |