The European power spot prices inched up yesterday as the expectations of lower French nuclear availability offset the forecasts of stronger wind output and weaker demand. The day-ahead prices averaged 250.32€/MWh in Germany, France, Belgium and the Netherlands, +10.66€/MWh day-on-day.
The EUAs rebounded from Wednesday’s retracement in a bullish move mostly fueled by the market’s low liquidity and supported by a strong auction result. Several market participants indeed pointed to the morning primary sale as the only noticeable event for emissions yesterday while highlighted that with the current limited activity due to the speculators remaining out of the market, a few million EUAs purchased are enough to push prices up by several euros. The 5-day moving average however capped the daily gains and the EUA Dec.22 eventually closed at 78.24€/MWh, +1.64€/t from Wednesday’s settlement.
The power forward prices mirrored the early gains and following correction of the gas market on Thursday as the markets continued to digest the news of Russia requiring gas payments in ruble and evaluated whether or not the country is contractually allowed to do it. The back-end of the curve nonetheless managed to post slightly daily gains.
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