Monetary tightening leads to a major banking crisis
Macro & Oil Podcast #31 In this week’s Macro & Oil report of the EnergyScan podcast, Olivier Gasnier tells us about the Silicon Valley Bank…
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Expectations of stronger power demand and weaker French nuclear availability combined with higher fuels and carbon prices drove the European power spot prices above 130€/MWh yesterday. The day-ahead contracts reached 132.48€/MWh on average in Germany, France, Belgium and the Netherlands, +7.76€/MWh day-on-day despite the forecasts of slightly stronger wind and solar production for today.
After a slightly bearish morning, the EUAs strongly rebounded and quickly climbed to a new intraday record of 63.35€/t in a sharp upward move once again fueled by the surging gas prices amid increasing supply concerns for this winter. A late retreat of carbon prices, likely due to some profit taking, drove the EUA Dec.21 contract to settle at 62.45€/t, still +46 cent from Tuesday’s close.
The spiking fuels and emissions prices pushed the power futures prices to new records as well, posting hefty gains along the curve.