EnergyScan

EUAs fell further to 80€/t ahead of the options expiry

Except in France where they rose by 16€/MWh, the European power spot prices were mostly stable yesterday as the forecasts of stronger renewable and nuclear production offset the higher gas prices. The day-ahead prices averaged 302.57€/MWh in Germany, France, Belgium and the Netherlands, +0.26€/MWh day-on-day.

Ignoring the firmer gas prices, the EUAs continued to drop toward 80€/t on Tuesday as traders took their profits ahead of the options expiry scheduled today. The carbon benchmark contract fell as low as 78.25€/t but quickly rebounded as the 80€/t continued to act as a magnet due to the large open interests of calls at that strike price and below, with the market keeping all these options in the money for their last day. The EUA Dec.21 eventually closed at 79.48€/t, -2.63€/t day-on-day.

The British government published after market close its decision not to intervene following the activation of the UK cost containment mechanism at the end of November, stating its intention to support the ‘continued effective functioning’ of the market. The last UKA auction of 2021 was held yesterday.

The power forward prices posted slight losses along the curve, driven down by the fading EUAs, although some deliveries managed to moderately rebound as the end of the session with support from the late rise gas prices.

Share this news :
Share on twitter
Share on linkedin
Share on email

You might also read :

ES-gas
July 1, 2022

Prices maintain their bullish trend

European gas prices were up overall yesterday, still supported by uncertainties on Russian supply and LNG flows (following the shutdown of the US Freeport LNG…
ES-economy
July 1, 2022

Equity markets down 20-30% in H1

For the first time since the beginning of the year, US consumer spending contracted in real terms (deflated for inflation) in May, amplifying recession fears and the downward…
Join EnergyScan

Get more analysis and data with our Premium subscription

Ask for a free trial here

Don’t have an account yet?  Sign up here!

[booked-calendar]