Opus Energy
Energy Market Summary
November 2009 - January 2010
Shorter contract terms continue to be cheaper, reflecting the current market assessment of steadily increasing power prices (with the increased uncertainty over time).
Brent oil remained stable throughout November and the first part of December at around $77/barrel before dropping to a low for the period of $72 by the middle of December and then peaking at $82 at the start of January. Since reaching this peak oil has fallen to the pre Christmas low on $72.
Comments on the past 3 months (relating to the chart)
A -Warmer temperatures and good plant availability continue to have an effect on the curve. The decline in prices is accelerated by the fall in the gas curve.
B - Rising gas prices along with forecast cold temperatures begin their impact upon the curve.
C - A continued slide in the price of coal along with healthy supply margins feed through to the power curve with a week of falling prices.
D -The cold snap and heavy snow at the start of 2010 had little impact on the curve with system margins, on the whole, remaining comfortable over this period. Issues with Norwegian gas supplies could do little to impact the curve with softer coal and gas prices over this period keeping a one year price at around £38.70/MWh.
