Power prices rise following gains in gas and commodities
Business Energy Market Brief - May16
There was a general bullish trend in the energy markets during April with most gas and power contracts experiencing gains.
Seasonal gas prices moved away from the seven-year lows of last month, gaining 2.9% on average, as all contracts improved. Winter 16 gained 0.7% to 33.5p/th. Summer 17 lifted 1.3% to 30.5p/th. Winter 18 saw the largest increase, up 4.4% to 37.2p/th. Prices were supported by rising oil prices. Day-ahead gas moved 2.1% lower to average 29.0p/th as warmer weather reduced demand.
Seasonal power contracts all improved during April. Winter 16 power followed its gas counterpart higher, lifting 0.7% to a four-month high of £37.9/MWh, amid tightening supply margins. Summer 17 power rose 2.9% to £36.6/MWh. Summer 18 saw the biggest gains, climbing 5.9% to £31.8/MWh. Day-ahead power followed its gas counterpart lower, losing 1.2% to average £33.9/MWh..