Another day, another EUA’s failure to settle above 60€/t

The European power spot prices soared near 200€/MWh for today, buoyed by forecasts of stronger demand and weaker wind output. The day-ahead prices averaged 200.41€/MWh in Germany, France, Belgium and the Netherlands, +23.23€/MWh from Friday and +106.43€/MWh from last week due to the stronger wind production then.

Trading sideways over the last session of the week, the EUAs failed for the third straight day to settle above 60€/t and its 50-day moving average resistance. The carbon prices observed a bullish morning, rising up to 61.23€/t with support from early gains in the gas market, but quickly retreated toward 59€/t in the afternoon as traders took their profit ahead of the weekend while the fuel prices faded back. The EUA Dec.21 eventually closed at 59.39€/t, -47-cent from Thursday’s settlement but notching a timid 0.68€/t weekly gain. Market participants continued to attribute the daily variations of emissions prices mostly to technical trading, pointing to a lack of fundamental drivers in the market and a weakening correlation with gas prices.

The power forward prices mirrored the gas and carbon markets’ move, posting early gains but giving them back in the afternoon to eventually close flat from the previous day.