Smarter Business Weekly Energy Industry Market Review - Desk with graphs

Energy Market Review, Monday 9th April

Headlines for Monday, 9th April

  • This week was dominated by bearish movements across the majority of our observed wholesale contracts.
  • Day-ahead gas fell 2.0% week-on-week to 49.0p/th (down from 50.0p/th). The same occurred across all other near-term and seasonal contracts. Near-term prices were influenced by falling demand, coupled with supplies supported from LNG deliveries. All seasonal gas contracts experienced bearish movements, falling 0.6% on average.
  • Brent crude oil subsided 2.9% to average $67.7/bl. Bearish movements were driven by a range of factors during the week. Prices weakened by rising Russian production.
  • After a long period of sustained growth, EU ETS carbon prices slipped 1.6% to average €13.0/t this week. Weak auction results throughout the week helped to drive prices downwards.
  • Most near-term peak power contracts experienced growth across the week. In contrast to the gas, carbon and oil markets, power and coal prices grew this week. Day-ahead power grew 2.4% to £49.9/MWh. Power prices were influenced by coal movements. However, gains were mitigated robust wind generation and high solar output at the end of the week. Seasonal baseload power prices rose this week, increasing on average by 0.8%.
  • After a recent bearish period, API 2 coal prices climbed, rising 2.5% to average $76.0/t. Growth was observed from the start of the week with the disruption to Australian coal supplies by cyclone Iris.

Brent Crude Oil

Brent crude oil subsided 2.9% to average $67.7/bl, declining from $69.8/bl the previous week.
Bearish movements were driven by a range of factors during the week. Prices weakened due to rising Russian production, along with expectations Saudi Arabia may lower their crude oil price to Asia.

API 2 Coal

After a recent bearish period, API 2 coal prices climbed last week, rising 2.5% to average $76.0/t (up from $74.1/t).
Growth was observed from the start of the week with the disruption to Australian coal supplies by cyclone Iris. However, gains were capped by bearish oil prices and a strengthening dollar.

EU ETS Carbon

EU ETS carbon prices slipped 1.6% to average €13.0/t last week.
With recent bullish prices driven primarily by speculators rather than market fundamentals, weak auction results throughout the week drove prices downwards.

NBP Gas

Near-term

All near-term gas contracts experienced losses last week.
Day-ahead gas fell 2.0% week-on-week to 49.0p/th (down from 50.0p/th).
Prices have been eased by falling demand, coupled with supplies supported from LNG deliveries. Four LNG tankers arrived at thermals across the week, creating ample supplies. Periods of oversupply have also pressured prices.
The month-ahead (May) contract declined 1.1% to 46.8p/th last week.

Seasonal

All seasonal gas contracts experienced bearish movements, falling 0.6% on average.
Winter 18 gas dropped 1.0% to 45.2p/th and the summer 19 contract lost 0.4% to 40.5p/th.

Annual October 18

Annual October 18 gas dipped 0.7% to 46.8p/th.
The contract is now 0.1% now below its price the same time last month (46.9p/th). In contrast, it is 6.4% higher than the same time last year (44.0p/th).

Baseload Power

Near-term

Most near-term baseload power contracts rose last week.
Day-ahead power grew 2.4% to £49.9/MWh, up from £48.8/MWh the previous week.
Power prices were influenced by bullish coal movements. However, gains were mitigated by bearish fundamentals amid robust wind generation and high solar output at the end of the week weighed on prices.
The month-ahead (May) contract grew 0.9% to £47.5/MWh.

Seasonal

Seasonal baseload power prices rose last week, increasing on average by 0.8%.
Winter 18 power slipped 0.7% to £52.5/MWh and the summer 19 contract grew 0.8% to £42.8/MWh.

Annual October 18

The annual October 18 power contract remained unchanged at £47.6/MWh.
In comparison with the same period last month (£46.4/MWh), prices were 2.8% higher.