This morning, the Electric wholesale (Day Ahead) prices have opened up 10.99% Lower than this time last week with Gas (Day Ahead) decreasing by 2.47%.
Weekly Report
With the long weekend and wonderful weather behind us, Brent crude is trading near $120/bbl this morning, up about a dollar (0.66 percent ). Saudi Arabia has supported gains by raising front-month crude prices to their highest level since breaking records in May, indicating constrained supplies. The decision by OPEC+ last week to increase supply by 648,000 bpd in July and August has slowed momentum (an additional 50 percent ).
Last week, markets were bullish on the overall, with front-month electricity prices up 5% and gas rates up 4%, and annualised commodities up 1% for both products. Similarly, European Carbon increased by 2%, with Crude up 0.63 percent and coal up 1.1 percent week-on-week. Only LNG fell 2% last week as Norway's Hammerfest Plant restarted production following a two-year hiatus, increasing to supply.
Gazprom's decision to cut off supply to Shell and Orsted, effectively cutting off Denmark, influenced last week's movements. Easing Chinese tight limits boosted optimistic optimism, with demand rising just as the EU announced that Russian crude imports would be phased out over the next six months.
W-22 NBP: Slow trade this morning as the market seemed to be recovering from a hangover. A 4p/th gain is implied by the Bid-Offer-Spread, and BoM NBP was briefly offered for a 50p/th premium (though this offer has since been revoked). Warmer weather is on the coming, with wind speeds increasing throughout the week, which is good news for renewables. However, the NTS will be 20.5mcm short due to an unanticipated outage in the Troll field, prompting the NBP up ~50% as a result.
How the market has opened each day:
Date Electric (£/MWh) Gas (p/therm)
30/05/2022 181.00 158.00
31/05/2022 172.50 151.50
01/06/2022 135.00 114.00
06/06/2022 161.10 154.10
7 day averages
Electric (£ per MWh) 162.40
Gas (pence per therm) 144.40
The below shows how the market compares to the previous week, month and year.
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