EUAs pursued their slow recovery while power prices traded sideways

The European power spot prices continued to rise yesterday, lifted by higher gas prices and forecasts od weaker French nuclear availability, fading renewable generation and stronger demand. The day-ahead prices averaged 271.15€/MWh in Germany, France, Belgium and the Netherlands, +23.73€/MWh day-on-day.

The carbon prices posted a timid 1.1% daily gain on Tuesday, weighed in the morning by a weak auction result but rebounding later in the session in a overall calm market as participants seem to be waiting for the 2021 verified emissions publication scheduled on Friday. The EUAs’ afternoon recovery coinciding with the opening of the US market and the bullish American equities suggest that the rebound might have been driven by US buyers. The EUA Dec.22 eventually closed at 81.70€/t, +0.89€/t from Monday’s settlement, but is slightly correcting this morning, possibly pressured by the bullish opening of the gas and power markets.

After extending sharp gains at the market open yesterday, the power forward prices retreated alongside the gas market throughout the remainder of the day as seemingly positive developments on the Russia-Ukraine ceasefire talks reassured the energy markets.