EUAs gained back part of Friday’s losses for the last day of the Dec.21

The power spot prices continued to climb in northwestern Europe yesterday, supported surging gas and carbon prices, colder temperatures and forecasts of a wind shortage. The day-ahead prices averaged 434.42€/MWh in Germany, France, Belgium and the Netherlands, +75.08€/MWh day-on-day.

The EUAs rebounded from Friday’s sell-off and gained 8.3% on Monday as gas and power prices soared further up after Gazprom booked disappointing pipeline capacity for January. With the sharpest rise observed in the afternoon, the EUA Dec.21 eventually closed and expired at 79.38€/t, +6.10€/t from Friday’s settlement and notching a 143% overall increase in 2021. Yesterday was also marked by the last auction of the year, with the first sale of 2022 scheduled on January 10^th. Although largely known and anticipated beforehand, the lower supply during the auction break period usually tends to support the emissions prices while the market observes a limited liquidity.

Buoyed by the surging gas prices and reversing emissions, the power forward prices posted hefty gains along the curve on Monday.