This week, the majority of baseload power and gas contracts moved lower. However, near-term contracts including day-ahead and month-ahead gas and power contracts rose from last week, with tighter gas supplies and lower wind generation the main drivers. The day-ahead contract was up 12.6% to end the week at £40.7/MWh, a two-week high, while day-ahead gas was up 6.8% to end the week at 27.4p/th. Seasonal gas contracts were pressured by a fall in Brent crude oil prices, which declined despite news that OPEC would extend production cuts until March 2020. Concerns of weaker economic growth continue to dampen oil demand, and the market views OPEC’s decision as inadequate to balance oversupply. On average seasonal contracts were 1.5% lower week-on-week, pressured by a decline in oil prices. Winter 19 gas dropped 2.8% lower, ending the week at 48.4p/th. The fall in seasonal gas contracts fed through into seasonal baseload power contracts, which were also down 1.5% week-on-week. Winter 19 power fell 2.2% to £54.-/MWh, slightly lower than the same time year (£57.1/MWh). Brent crude oil fell for the first time in five weeks, down 2.0% to average $64.4/bl. API 2 coal prices lifted 0.8% to average $64.9/t, ending the week at a six-week high of $67.0/t following a pickup in coal demand from India due to the arrival of a monsoon. EU ETS carbon prices were unchanged, averaging €26.6/t and ended the week below €26.0/t, a two-week low.
Baseload electricity | ||
|
| |
Forward curve comparison
| Annual October Contract
| |
Peak electricity | ||
|
| |
Forward curve comparison | Annual October contract | |
Seasonal power prices | ||
Seasonal baseload power contracts | Seasonal baseload power curve | |
|
| |
Commodity price movements | ||
Oil and Coal | Carbon | |
|
| |
Wholesale price snaphot |