EUAs quickly retreated after hitting a new 5-week high

The power spot prices soared near 230€/MWh in northwestern Europe for today, lifted by forecasts of higher demand and weak wind and solar generation. The day-ahead prices averaged 227.96€/MWh in Germany, France, Belgium and the Netherlands, +57.19€/MWh from Friday and +27.55€/MWh week-on-week.

The EUAs climbed to a new 5-week high on Friday morning, but quickly fell back in another session marked by a low liquidity, option and technical trading, and profit taking ahead of the weekend. The carbon prices rose as high as 64.49€/t mid-morning, extending their rally initiated on Wednesday in an upward move attributed to early gains in the gas market and delta hedging following an increased open interest for EUA call options at 70€/t strike price. The emissions however quickly gave back their early gains later in the morning as the energy complex started to retreat, and dropped by another 80-cent at the end of the day as traders took their profits ahead of the weekend. The EUA Dec.21 eventually closed at 63.27€/t, – 43-cent from Thursday’s settlement but nonetheless a noticeable +3.88€/t (+6.53%) from the previous week.

The power forward prices tracked the early rise and subsequent retreat of the gas and carbon markets but managed to eventually post slight-to-moderate gains along the curve.

Energyscan power news
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