Business Energy Market Brief - Oct17
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Energy Market ReportsBusiness Energy Market Brief - Oct17

Business Energy Market Brief - Oct17

Ian Mckenna

by Ian Mckenna 01 October 2017

Report Summary:

Commodities hit multi-year highs, power follows

key-market-indicatorsEnergy Market Brief - Oct17

A number of gas and power contracts hit multi-month highs in September, whilst Brent crude oil, API 2 coal and EU ETS carbon prices all reached multi-year highs.

Day-ahead gas gained 8.1% to average 46.2p/th in September, its highest monthly average in seven months, as annual maintenance at a number of gas import terminals and processing facilities restricted supplies. On 14 September, the contract reached a seven-month high of 48.0p/th. Seasonal gas contracts gained 1.6% on average, supported by higher oil prices. Winter 17 gas jumped 4.8% to 49.9p/th, with gains exacerbated by concerns over tight supplies for this winter. Summer 18 gas moved 2.5% higher to 41.8p/th.

Day-ahead baseload power leapt 8.8% to average £47.2/MWh, also its highest monthly average in seven months, following gas prices upwards. The month-ahead contract rose 3.2% to £46.5/MWh. Most seasonal baseload power contracts rose, and on average increased by 1.5%. Winter 17 power climbed 4.3% to £50.6/MWh, and summer 18 power gained 2.1% to £42.2/MWh.