EUAs continued to surge toward 80€/t

The power spot prices were mixed yesterday in northwestern Europe, down in Germany and the Netherlands on stronger wind forecasts, flat in Belgium due to the restart of Doel-4 from planned maintenance, and up in France on higher power demand expectations. The day-ahead prices averaged 220.14€/MWh in the four countries, -8.71€/MWh day-on-day.

The carbon pursued their sharp ascend yesterday, steadily climbing throughout the day as call options sellers delta hedging continued to buoy prices. The Dec.21 reached up to 79.98€/t at the end of the day with very heavy exchanged volumes as 58mt changed hands through the benchmark contract while the year to date average only amounts to 28mt. The EUA Dec.21 eventually closed at 79.86€/MWh, +3.05€/MWh from Wednesday’s settlement. The emissions prices finally broke above 80€/t this morning, but could face a correction later today as traders take their profit ahead of the weekend, the current relative strength index at 90 pointing to clearly overbought conditions for the Dec.21 contract.

Lifted by the soaring emissions prices, the power forward prices extended moderate gains along the curve on Thursday.