Energy Wholesale Market Review, 7 February 2020
Headlines
The majority of short-term power and gas contracts fell this week, with some future seasonal contracts gaining despite substantial losses seen in the day-ahead contracts. Day-ahead gas fell 7.3% to end the week at 22.75p/th, with forecasts of fluctuating temperatures seeing gas extend losses this week. Day-ahead power followed gas and fell 15.9% to £26.50/MWh as expected high wind generation next week pushed prices lower. March 20 gas was down 5.9% at 22.27p/th, and April 20 gas decreased 7.1% to 22.10p/th. Most seasonal gas contracts traded higher this week, up by 2.8% on average. This was despite the summer 20 gas dropping 3.4% to 23.61p/th, while winter 20 gas increased 2.3% to 35.86p/th. Seasonal power contracts generally boosted this week, up on average by 1.0%, as summer 20 power expanded 2.3% to £34.00/MWh, while winter 20 fell 0.7% to £43.00/MWh. Brent crude oil fell by 6.0% to $55.36/bl as the spread of the coronavirus continued to impact global markets, though the majority of falls came earlier in the week as the commodity price steadied later on. EU ETS carbon slipped by 2.9% to €23.33/t to follow oil and gas prices lower, while API 2 coal lost by 0.6% to $60.28/t despite predictions that prices could rise due to increasing demand in China.
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Forward curve comparison
| Annual October Contract
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| Peak electricity | ||
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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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| Commodity price movements | ||
Oil and Coal
| Carbon
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Wholesale price snapshot
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