Innovative Energy Consultancy Ltd
Innovative Energy Consultancy Ltd

February Markets Update

Power update

Wholesale power prices were bearish at the end of January due to strong supply and lower demand. Despite low wind generation, UK power contracts dropped 2.5% on average due to milder weather. Contracts dropped by 0.7% at £37.0/MWh while Summer contracts dropped by 1.5% (£35.84/MWh) and Winter by 1.5% (£44.21/MWh).

 

Gas

Gas prices dropped by 3.4% on average at the end of January, partly due to high volumes arriving in the UK. A spell of cold weather on mainland Europe had a short-term impact on price. Month ahead prices dropped by 0.1%, closing the month at 27.25p/th.

 

Oil

The Brent oil price is hovering around $58/b whilst the Coronavirus pandemic has increased concerns over lower oil demand in China and a growing concern that many deliveries will be turned away as a result of the outbreak.

COAL

Coal prices moved down in January though are expected to recover this year on forecasts of stronger demand from some Asian countries.

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