Day-ahead gas soared by 50.6% in October
Energy Market Brief - Nov16
Day-ahead gas soared 50.6% higher in October, to average 43.1p/th. This was the largest monthly gain since at least 2012. On 26 October day-ahead gas reached 48.0p/th, the highest price since April 2015, as gas demand for power generation and heating was expected to rise significantly the following day.
Seasonal gas prices increased 13.0% on average, with a rise in oil prices. Summer 17 gas experienced the largest gain of 14.9% to average 42.5p/th. Winter 17 moved 13.1% higher to 48.0p/th. Seasonal gas prices were higher than their levels last year.
At the end of October, Centrica announced that it was “still conducting preparatory works and reinstatement testing” at the Rough gas storage site, which is expected to be completed in the second half of November. These additional delays will further tighten supply.
Seasonal baseload power contracts on average increased 11.4% in October, following their gas counterparts higher. Summer 17 power rose 13.7% to £44.1/MWh. Winter 17 power gained 13.7% to £48.9/MWh.