EUAs hit new record on rising gas supply concerns

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.