A wave of panic swept through the financial markets on Friday in a context of low liquidity. The announcement of the emergence of a new variant, henceforth referred to as “Omicron”, with multiple mutations, apparently highly contagious and potentially resistant to existing vaccines, led to a sharp fall in the equity markets (-4.7% for the Eurostoxx…
European gas prices dropped on Friday as the discovery of a new variant of the Covid-19 caused widespread panic in energy markets. But, compared to oil and coal, the decline in gas prices was relatively moderate. In Asia, JKM spot prices dropped by 1.12%, to €106.275/MWh; January 2022 prices dropped by 4.7%, to €105.196/MWh. On…
The power spot prices surged for today in northwestern Europe, lifted by forecasts of below-average temperatures, low French nuclear availability and weak renewable generation. The day-ahead prices averaged 271.95€/MWh, +51.11€/MWh from Friday and +43.20€/MWh week-on-week, with prices rising up to 301.12€/MWh in France due to the higher temperature sensitivity of the country’s power demand. The…
The crude futures market experienced a huge drawdown on Friday of close to 13% intraday, as the news that the omicron COVID variant was spreading rapidly hit the market amid thin liquidity and January being close to expiry. The price drop was further magnified by option dealers adding momentum due to their net short gamma position,…
The forecasts of lower temperatures supported the power spot prices in northwestern Europe yesterday which climbed to 249.81€/MWh on average in Germany, France, Belgium and the Netherlands, +21.06€/MWh day-on-day and +16.63€/MWh from the previous week. Disregarding the weaker energy complex and the growing concerns over the worryingly soaring new Covid-19 cases, the EUAs pursued their…
