All wholesale power and gas contracts moved lower week-on-week. Gas contracts fell as the arrival of two LNG tankers early in September resulted in higher LNG send-out and led to medium range storage (MRS) reaching 99% capacity. This offset any reduction in flows following maintenance in Norway. Comfortable gas supplies and higher wind generation also weighed on prices, with both day-ahead power and gas contracts hitting record lows; day-ahead power dropped to £30.6/MWh on 3 September, the lowest since 8 September 2016, and day-ahead gas fell to 19.3p/th on 4 September, a 10-year low. All seasonal gas contracts also declined, dropping 1.6% on average. Winter 19 gas ended the week 4.4% lower at 44.8p/th, having dropped to 44.2p/th in the middle of the week, the lowest since May 2017. The expected resurgence in LNG tanker arrivals this autumn and comfortable gas storage levels have been the key drivers for the decline. All seasonal power contracts also decreased, dropping 2.2% on average. Winter 19 power was down 3.8% at £50.5/MWh, the lowest since April 2018. Brent crude oil was down 1.4%, averaging $59.3/bl. Oil prices fell early in the week, with within-day prices dropping to $57.3/bl on 3 September, a near one-month low, as OPEC production cuts continue and the US-China trade war dents demand forecasts. EU ETS carbon prices were 2.5% lower to average €25.4/t. Uncertainty around Brexit continues to weigh on carbon prices, with a no-deal Brexit expected to result in British emitters flooding the market with EUAs.
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 snaphot |