Business Renewals

Wholesale Energy March 2020

Eon renewable energy

Most World financial markets saw huge downward swings in March due to the rising numbers of Coronavirus with many Governments invoking lockdown measures to try and protect and reduce the ongoing pandemic.

Oil in particular saw huge falls with OPEC, Russia and the US all refusing to collaborate on a reduction in supply into a much reduced demand system.

In the UK day-ahead electricity markets started the month around £38/MWh but ended up shedding almost daily to reach £24.62 at months end.  Both Winter 20 and Summer 21 also lost value by around 11% to finish on £34 and £38 respectively.

Day ahead Gas markets followed a similar pattern starting the month at 24p/therm to finish up down at 17.5p/therm, with very limited storage capacity in the UK and demand expected to be low there will need to be a concerted effort from gas producers to correct the supply/demand issues likely to be seen over the next few months.

Brent Oil started the month at $50 only to shed almost half its value finalising at $26.  The only rescue for this is likely to be an agreement between OPEC and Russia to cut production, which is expected in April 2020.

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