Your Weekly Wholesale Energy Market Update - 15/05/2023
See below for the latest weekly wholesale energy market report and movements that have happened in the last week.
Oil and Markets - Weekly Energy Report
Brent crude finished last week with another session of losses, shedding 1.08%, or $0.81, to $74.17 per barrel. This happened as the market tried to balance supply fears following the OPEC+ production cuts, as well as renewed recession fears in the US and economic concerns in China. The US market was shaken last week as the $31.4 trillion debt ceiling talk was postponed, and traders’ fears grew as another regional bank, PacWest Bancorp, teetered on the brink of crisis. Against this backdrop of volatility, the S&P 500, rattled by the mounting recession anxiety, registered a 0.16% dip to close at $4124, reflecting the bearish state of the financial markets.
Gas and Power - Weekly Energy Report
In a reversal from the many slight corrections of last week, all relevant UK gas and power contracts saw large decreases, with the front-month gas and power losing 6.0% and 4.2% to 75.93 p/therm and 85.18 £/MWh respectively. The absence of bullish drivers, as well as a comfortable fundamental picture in the form of strong LNG arrivals and growing storage levels (63.6% at the time of writing) creates a bearish-to-sideways narrative for the near-term. European markets shared similar sentiments, with benchmark Dutch front-month gas dropping 6,36% to 32.8 €/MWh, however the analogous German power contract felt a more reserved 0.3% drop to 92.2 €/MWh.
How the market has opened each day:
DAY AHEAD PRICES | Gas (pence per therm) | Electric (£ per MWh) |
09/05/2023 | 85.75 | 94.00 |
10/05/2023 | 83.00 | 96.50 |
11/05/2023 | 80.50 | 87.50 |
12/05/2023 | 76.75 | 85.00 |
15/05/2023 | 76.75 | 82.75 |
| | |
7 day averages
Gas (pence per therm) 80.55
Electric (£ per MWh) 89.15
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