Forecasts of a wind surge in the upcoming hours led the power spot prices to drop in northwestern Europe, Germany as usual observing the heaviest losses due to its large wind turbine installed capacity. The day ahead prices averaged 137.33€/MWh in France, Belgium and the Netherlands, -17.35€/MWh day-on-day and 73.16€/MWh in Germany, -72.82€/MWh.
The EUAs hovered just above 60€/t on Wednesday as the market focused on the September options expiry with this level of strike price observing the largest open interest for the call options. The carbon allowances prices presented a stronger volatility in the afternoon, jumping up to 60.75€/t once the options expired but quickly correcting back to 60€/t. After a late upward move at the end of the session, the EUA Dec.21 eventually settled at 60.60€/t (+0.44€/t day-on-day), with most market participants having diverging opinion on which direction the EUAs could take in the short term.
Meanwhile, the power short-to-mid term prices posted losses tracking the weakening underlying gas prices while the Cal23 and beyond contracts extended some slight gains.
Get more analysis and data with our Premium subscription
Ask for a free trial here
