Annual wholesale gas and power prices hit six-month highs in October, despite falling international energy prices. This was driven by rising demand and concerns the UK would not be able to attract any LNG cargoes over the near term. The annual power contract is now at levels last seen in the spring. Annual April 2013 baseload electricity increased to a six-month peak of £52.9/MWh on 23 October – 10% above summer lows and 1% above the highest point in August. Despite this, annual April 13 baseload power remains around 6% lower than this time last year. Annual April 2013 gas reached a six-month high of 67.2p/th on 23 October; this is 3% higher than last month, but still 4% below last year’s figures.
Oil prices dropped over continuing concerns about global economic growth, although on-going tensions in the Middle East provided some support. Month-ahead Brent crude oil dropped to a two-week low of $107.9/bl on 26 October.