The ICE Brent Dec-21 contract is consolidating at the 85 $/b, at odds with the rally in US equity markets, which usually boosts commodity prices. Indeed, the recent report on positioning showed that money-managers were diverting exposure from the Brent market – 31k of reduced long exposure on the Brent instrument – to the WTI market. The WTI-Brent spread had a…
The European power spot prices continued to drop yesterday and fell below the clean coal costs, driven down by lower clean fuels costs, the surging wind output, a weakening power demand and forecasts of stronger solar generation in Germany. The day-ahead prices hence averaged 84.33€/MWh in Germany, France, Belgium and the Netherlands, -76.09€/MWh day-on-day and…
European spot gas prices were mixed yesterday, while curve prices were more clearly downward. The latter continued their technical correction in a context of rather stable Asia JKM prices (-2.34%, to €102.895/MWh, on the spot; +0.21%, to €100.933/MWh, for the December 2021 contract) and lower parity prices with coal for power generation (both coal and…
The European power spot prices dropped yesterday, pressured by forecasts of surging wind output and warmer temperatures weakening the power demand. The baseload day-ahead prices averaged 160.42€/MWh in Germany, France, Belgium and the Netherlands, -33.15€/MWh day-on-day and should continue to fall today as the German wind production is expected to climb above 35GW tomorrow. The…
China’s 4th and last batch of crude imports is impacting far east crude grades, as ESPO cargoes traded 6$ above the Dubai benchmark yesterday for December loading. It is likely that most ESPO loadings will sail to China, as independent refiners are looking for light sweet distillate rich grades that require little natural gas consumption and…
