Headlines
Most power and gas contracts fell this week, driven down by several bearish factors. Day-ahead gas lost 5.9% to 27.20p/th, as greater wind generation later in the week weighed on prices. Day-ahead power dropped 8.1% to £35.40/MWh despite peaking above £40.00/MWh in the middle of the week due to low wind generation. February 20 gas was down 4.5% at 27.35p/th and March 20 gas decreased 6.1% to 26.25p/th. All seasonal gas contracts declined this week, down by 5.4% on average, while summer 20 and winter 20 gas dropped 5.3% and 7.5% to 25.95p/th and 37.50p/th, respectively. All seasonal power contracts followed gas and declined this week, down on average by 4.1%, as summer 20 power decreased 4.1% to £35.90/MWh, while winter 20 fell 5.4% to £44.15/MWh. Brent crude oil slipped 1.7% to $63.55/bl, ending the week at $61.75/bl, over fears that the outbreak of the coronavirus in Wuhan, China will hamper the country’s oil demand. EU ETS carbon increased this week, rising 1.9% to average €24.96/t although prices continue to struggle on low demand in the current mild winter season. API 2 coal averaged $60.51/t, declining throughout the week to continue the bearish trend seen with coal prices.
| Baseload electricity | | |
- Day-ahead power fell 8.1% to £35.40/MWh as greater wind generation later in the week weighed on prices.
- February 20 power slipped 3.5% to £37.00/MWh and March 20 power decreased 3.9% to £36.00/MWh.
| | - Q220 power moved 4.6% lower to £35.85/MWh.
- The Annual April 20 contract lost 4.8% to £40.03/MWh, 27.2% lower than the same time last year (£55.02/MWh).
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Forward curve comparison 
| | Annual October Contract 
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| Peak electricity | | |
- Day-ahead peak power went down 6.4% to £40.00/MWh, following its baseload counterpart lower.
- February 20 peak power declined 4.2% to £42.05/MWh, and March 20 peak power decreased 3.4% to £39.90/MWh.
| | - The annual April 20 peak power lost 4.7% to 45.40/MWh.
- This is 26.2% lower than the same time last year (61.53/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 declined this week, down on average by 4.1%.
- Summer 20 power decreased 4.1% to £35.90/MWh, while winter 20 fell 5.4% to £44.15/MWh.
| | - All Seasonal peak power contracts declined this week, down £4.3% on average.
- Summer 20 and winter 20 peak power dropped 4.0% and 5.3% respectively, falling to £39.75/MWh and £51.05/MWh.
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| Commodity price movements | | |
Oil and Coal 
| | Carbon 
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- Brent crude oil sipped 1.7% to average $63.56/bl, ending the week at $61.75/bl, over fears that the outbreak of the coronavirus in Wuhan, China will hamper the country’s oil demand.
- Currently, the largest global importer of oil, stable consumption of the commodity in China is vital to upholding Brent prices. With the city of over 11mn people in near-lockdown, oil consumption within the city has decreased due to a lack of movement, while oil prices have also been weighed upon by the lack of air travel both internationally and domestically.
- API 2 coal averaged $60.51/t, declining throughout the week to continue the bearish trend seen with coal prices.
| | - EU ETS carbon increased this week, rising 1.9% to average €24.96/t although prices continue to struggle on low demand in the current mild winter season.
- In a report published on 22 January, analysts at Refinitiv announced that world carbon markets grew by 34% in €194bn in value in 2019, despite a decrease in volume of trades. The largest increase was by the European market, which expanded by 30% to €169bn, with analysts citing the introduction of the Market Stability Reserve (MSR) the largest source of growth.
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Wholesale price snapshot
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