The power spot prices edged down yesterday in northwestern Europe as the market anticipated a slower activity ahead of the Ascension Day tomorrow and a weak solar production today, although the forecasts of lower temperatures may have limited the losses. Prices reached 68.74€/MWh on average in France, Germany, Belgium and the Netherlands, -3.43€/MWh day-on-day.
Disregarding the falling equities and bearish pressure from their technically overbought conditions, the EUAs instead continued to rise and climbed above 53€/t on Tuesday amid support from the soaring fuels prices, lingering strong buying interest from investors and possibly the limited auction supply this week and cold and calm weather prospects.
Once again buoyed by the stronger gas and carbon markets, the power prices extended moderate gains along the curve, with additional support to the short-term contracts from the forecasts of below average temperatures and weak wind production for the upcoming weeks.
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