EUAs faded ahead of the auctions’ resumption

Buoyed by forecasts of a wind shortage the European power spot prices for today significantly rose compared to last week, although the weaker demand and improved French nuclear availability expected in the upcoming hours might have limited gains. The day-ahead prices averaged 260.77€/MWh in Germany, France, Belgium and the Netherlands, +67.64€/MWh from Friday and +174.27€/MWh week-on-week.

After slight early gains but an overall rangebound day, the EUAs faded at the end of Friday’s session as the market was pressured by the waning gas and equity prices, traders taking their profit from the prices’ rise earlier this week and participants anticipating the resumption of the carbon allowances’ auctions scheduled today. The EUA Dec.22 closed the day and week at 85.42€/t, -1.32€/t from Thursday’s settlement but still marking a 5.9% gain from the previous week. The market should focus on the first primary sale of the year today. The EUA benchmark contract opened up from Friday’s close this morning, but the currently fading gas prices could pressure the market.

The power forward prices extended losses on Friday, driven down by the weaker gas and emissions prices although some market participants remains worried that the volatile weather could quickly reversed the move.