Energy Wholesale Market Review, 6 August 2021
Headlines
Retaining their bullish momentum, the majority of gas and power contracts reported gains this week. Day-ahead gas rose 6.9% to 109.00p/th, finding support from lower UKCS production and a drop in Norwegian imports during the week, alongside forecasts of increased gas-for-power demand at the week’s end. Despite reducing mid-week, day-ahead gas prices reached a more-than three-year high on 2 August of 109.00p/th, rising back to this level on Friday. September 21 gas rose 8.8% to 111.15p/th, and October gas traded 7.6% higher at 112.42p/th. All seasonal gas contracts saw price rises this week, up by an average of 8.6%. Following its gas counterpart, day-ahead power went up 4.0% to £105.00/MWh, while also finding support on Friday from forecasts of weaker wind output at the start of next week. September 21 power increased 10.3% to £110.00/MWh and October 21 power elevated 2.8% to £104.50/MWh. Seasonal power contracts averaged an increase of 9.6% this week. Brent crude oil slipped marginally, down 3.2% to average $72.50/bl. Prices were weighed on news of the rising prevalence of the Delta variant in the US and China, and amid news of the potential for fresh travel restrictions across several countries. Carbon prices continued their upwards trajectory this week, with the EU ETS up by 3.6% to average €55.32/t, and the UK ETS boosting 7.5% to average €46.64/t, finding support from a tight European gas market.
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Forward curve comparison
| Annual April Contract
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Forward curve comparison
| Annual April contract
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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
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