Business Energy Market Brief - Aug17
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Energy Market ReportsBusiness Energy Market Brief - Aug17

Business Energy Market Brief - Aug17

Jamie Flanagan

by Jamie Flanagan 07 August 2017

Report Summary:

Commodities hit multi-month highs, power follows

key-market-indicatorsEnergy Market Brief - Aug17

The majority of power contracts along the forward curve increased in July, supported by an underlying rise in commodity prices. In contrast, gas contracts experienced mixed movements.

In July, day-ahead gas gained 3.4% to average 36.2p/th, halting a five-month downward trend as maintenance at a major gas processing plant in Norway and on the UK Continental Shelf limited supplies. Month-ahead gas fell 2.2% to average 36.3p/th.

Seasonal gas prices lifted 0.4% on average. Winter 17 gas slipped 1.0% to 44.9p/th, and summer 18 gas moved 1.0% lower to 38.9p/th. All gas contracts beyond summer 18 rose.
Day-ahead baseload power gained 8.1% to average £42.9/MWh, its highest monthly average in five months, owing to outages at a number of nuclear plants and higher spot gas prices. The month-ahead contract rose 0.7% to £39.3/MWh.

Most seasonal baseload power contracts moved higher and on average increased by 0.9%. Winter 17 power was unchanged, but summer 18 power lifted 0.5% to £39.7/MWh.