Business Energy Market Brief - Dec17
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Energy Market ReportsBusiness Energy Market Brief - Dec17

Business Energy Market Brief - Dec17

Jamie Flanagan

by Jamie Flanagan 05 December 2017

Report Summary:

Commodities gain and power hits a 30-month high

key-market-indicatorsEnergy Market Brief - Dec17

Day-ahead power prices reached a 30-month high in November, whilst strong gains were observed across gas contracts. Brent crude oil, API 2 coal and EU ETS carbon prices extended from last month’s gains to reach fresh multi-year highs. Power prices climbed 9.0% to £50.9/MWh, reaching a 30-month high (£53.5/MWh) on 27 November, following a series of planned nuclear outages throughout the UK that tightened supplies and supported prices. Seasonal power contracts grew 3.2% on average last month. Summer 18 power expanded 3.8% to average £44.4/MWh, growing from £42.8/MWh the previous month. Winter 18 power lifted 3.7% to £49.6/MWh and grew to a two-year high of £50.4/MWh on 24 November.

Day-ahead gas prices rose 14.8% to average 52.2p/th, increasing from 45.5p/th in October. Prices were supported by tighter supplies and higher demand in winter months. All seasonal gas contracts experienced gains in November, as contracts from summer 2018 out to winter 2020 lifted 3.9% on average. The largest gains were observed in the summer 18 gas contract, which increased 5.2% to average 44.5p/th. On 27 November the contract rose to 45.70p/th, exceeding a two-year high. Winter 18 gas rose 4.6% to 51.8p/th. Throughout the month, winter 18 gas reached 52.9p/th on 27 November, its highest price since February 2015..