Daily (21.03.2017): European spot power prices skyrocket over 50% on stronger demand, tight supply

21/03/2017 09:22 Daily


Crude oil prices lost ground on Monday despite news that OPEC was supportive of extending a six-month deal to cut output as investors continue to be worried about increasing U.S. oil output and high inventories.


Brent oil for May delivery on the ICE Futures Exchange in London dipped 0.27% to settle at $51.62 a barrel. U.S. West Texas Intermediate crude May contract shed 1.15% to close at $48.22 a barrel.


European spot power prices surged on Monday, spurred by a decline in wind output in Germany, tight nuclear supply and the prospect of a strike at French group EDF's generation plants starting late on Monday. German prompt power for Tuesday delivery skyrocketed 55% at 30.47 euros per megawatt hour (MWh). The same French contract closed at 39.2 euros/MWh, 53% up from Monday.


Along the year-ahead power curve, prices tumbled tracking lower fuels. German year-ahead baseload was down 0.65% at 29.20 euros/MWh. The equivalent French contract decreased by 0.26% at 34.53 euros/MWh.  Europe's carbon benchmark, Dec. '18, lost 2.9% at 5.03 euros/tonne and cif Europe hard coal for 2018 delivery shed 1.41% at $63.65 a tonne.


British prompt gas prices rose on Monday on anticipated stronger consumption for Tuesday. The NBP spot contract jumped 0.99% at 40.95 pence/therm. Further out the curve, prices declined on weaker oil prices and stronger pound.  The April gas contract shed 1.7% to trade at 40.98 pence per therm.


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UK: Ofgem will reduce subsidies for small power generators

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Britain’s energy regulator Ofgem declared on Tuesday it will cut subsidies to several small electricity producers that offer back-up during peak demand. According to Ofgem, this move would reduce household electricity bills by around 20 pounds a year, since the cost of the subsidies is included in overall network fees charged to power companies, which these pass on to consumers.


Centrica is closing UK’s largest natural gas storage site

20/06/2017 14:40:00

Centrica Storage Ltd (CSL) declared on Tuesday about its intention to stop storage operations at Rough. The energy supplier wants to permanently end Rough's status as a storage facility. Nevertheless, the company plans to produce all recoverable gas from the gas field, which is anticipated at 183 billion cubic feet (bcf).


EU reinforces ties with climate deal members after U.S. decision to withdraw

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The EU declared on Monday it promised to cooperate with China, the world's biggest polluter, to achieve the target of limiting global warming to well below 2 degrees Celsius above pre-industrial levels, following the Trump’s decision to withdraw from the Paris climate agreement.