All wholesale power and gas contracts fell week-on-week. Gas prices have been pressured by forecasts of warmer weather amid comfortable gas supplies, which, combined with a drop in Brent crude oil prices, pushed both day-ahead and winter 19 gas contracts to one-month lows of 27.5p/th and 53.0p/th respectively. Month-ahead gas was down 6.7% to 28.2p/th, as above seasonal normal temperatures are forecast throughout most of June. Baseload power contracts mirrored their gas counterparts, as day-ahead power fell 3.8% week-on-week to a near two-year low of £35.6/MWh, pressured by lower gas prices and decreasing summer power demand. Month-ahead power lost 4.6%, ending the week at £39.1/MWh. All seasonal power contracts moved lower, falling 1.1% on average. Winter 19 power declined 2.1% to £56.6/MWh, a near one-month low. Brent crude oil fell for the second consecutive week, dropping 3.9% to average $68.2/bl. Oil prices dropped to $64.9/bl on 31 May, the lowest since mid-February. Prices have been pressured by the ongoing US-China trade war, which continued to offset concerns of tighter global supplies. API 2 coal prices fell 2.8% to average $66.1/t, having ended the week at a two-year low of $65.4/t. API 2 coal prices have been pressured by weak demand in Europe, as higher gas storage levels in NW Europe and downwards movements in European hub gas prices continue to push coal-fired generation out of the power mix. EU ETS carbon prices were up 1.2% to average €25.3/t.
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
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Supplier tariff movementsIn April, 14 suppliers decreased the price of their cheapest tariff or launched new cheaper tariffs, while 14 suppliers increased the price of their cheapest available tariff. Eversmart Energy launched a new fixed tariff which was £178/year lower than its variable tariff, while ESB Energy launched an exclusive tariff with uSwitch priced at £978/year, £120/year lower than its next cheapest two-year tariff. Wholesale price snapshot |