The European power spot prices observed mixed variations yesterday, slightly up in France amid expectations of lower nuclear availability, but down in Belgium, Germany, and the Netherlands on forecasts of strong wind and weaker demand. The day-ahead prices averaged 195.56€/MWh in the four countries, -8.63€/MWh day-on-day.
After bearish morning the EUAs reversed and hit yet another fresh record at 69.27€/t in the afternoon (already exceeded this morning) as the strong bullish momentum and technical buying amid a lack of sellers continued to drive the prices up. The Dec.21 eventually closed at 69.10€/t, +1.94€/t day-on-day, but several market participants mentioned a lack of buying interest from industrial for carbon allowances above 65€/t.
On the policy side, the ESMA published its preliminary report on the speculative behaviors in the EU ETS which pointed to no evidence of market manipulation by the non-compliance players.
Despite rebounding throughout the day, the power forward prices failed to get back Wednesday’s late drop and yesterday low opening and eventually posted losses from the previous day’s settlements.
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