The market remains bullish despite headwinds
The price of Brent 1st-nearby rose above $90/b yesterday even as US crude oil inventories rose for the second week in a row: +2.4mb. But it…
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The European power spot prices faded further yesterday, weighted by forecasts of rising wind and hydro generation, although the stronger power demand expected today might have limited the losses. The day-ahead prices averaged 175.65€/MWh in Germany, France, Belgium and the Netherlands, -10.30€/t day-on-day.
Buoyed by the rising gas prices amid low Russian supply, the carbon prices posted slight gains and tested several time the 50-day moving average and the 60€/t level resistances yesterday, but failed to close above. The carbon market has observed a weak correlation with the gas prices over the past weeks and seems to be trading mostly on technical and weather factors due to a lack of fundamental drivers. The EUA Dec.21 eventually closed at 59.82€/t, +0.36€/t day-on-day.
The power forward prices extended gains along the curve on Wednesday, driven up by the bullish gas market and slightly up emissions prices.