The Brent contract change has caused the 1st-nearby to lose nearly $2/b due to the extremely sharp backwardation. It is trading below $89.5/b this morning. Backwardation continues to widen: when comparing the 1-year contract and the 1st Brent contract, it now exceeds $10/b, which has not been seen since 2013. The situation remains extremely tense in…
European power prices tracked losses in natural gas and coal prices on Monday, while EUA prices sent neutral signals. Very strong wind power generation in northwest Europe weighed on spot prices, especially in Germany where they continued to trade much below France where nuclear generation failed to reach the 50 GW mark again notably with…
European gas prices eroded the risk premium built last week on Monday with biggest losses recorded on prompt and near-curve contracts as mild and very windy weather prospects for the coming days cut demand expectations. In the UK, gas demand is expected to drop by 14% below seasonal norms on Wednesday and Thursday according to National Grid…
To the question we asked yesterday “Can the optimism be confirmed?”, the equity markets have given a positive answer, especially in the US. However, there is nothing to say that it is definitive. But the event of the day occurred in Europe, where the German 10-year yield returned to positive territory for the first time in…
Spot and curve power prices took opposite paths on Friday, with mild and extremely windy weather weighing on short-term maturities whereas lingering geopolitical concerns over Russian gas supply to Europe continued to support longer-dated maturities. In the UK, wind power generation hit an all-time high this weekend, dragging spot prices for Saturday delivery to a…
