The European power spot prices for today rose compared to Friday, buoyed by forecasts of weak renewable production despite the warmer temperatures expected today. The day-ahead prices averaged 268.15€/MWh in Germany, France, Belgium and the Netherlands, +27.40€/MWh from Friday with French prices keeping a premium over the neighboring countries at 300.69€/MWh.
After trading sideways in the morning, the EUAs started to rebound from Thursday’s large retracement on Friday afternoon as bulls came back to the market with support from a late but significant rise of gas prices. The EUA Dec.21 eventually settled at 83.73€/t, +3.53€/t from Thursday’s close and +7.00% week-on-week. A strong volatility could be expected until the options’ expiry on Wednesday, especially as Thursday’s record correction, attributed mostly to profit taking, pushed the carbon benchmark contract out of its overbought conditions.
Boosted by the rising gas and carbon prices, the power forward prices posted moderate gains along the curve on Friday.
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