EUAs retreated alongside the gas market

Despite a strong retreat of clean gas costs, the European power spot prices rose towards 200€/MWh for today, buoyed by forecasts of rather weak wind production and decent power demand. The day-ahead prices hence averaged 193.57€/MWh in Germany, France, Belgium and the Netherlands, +10.98€/MWh from Friday.

After a very short-lived bullish opening, the carbon prices eroded most of Thursday’s gains and dropped back below 60€/t in another volatile session on Friday. The sharp downward move was mainly attributed to the fading gas prices ahead of today’s gas pipeline capacity auction and possibly some usual profit taking ahead of the weekend and following the previous day’s gains. Some market participants also pointed to Poland’s late proposals to limit the speculation on the EU ETS, although most are doubting it had a bearish impact on prices as they see such intervention as highly unlikely, especially considering the EC recently excluded such reform from its toolbox to help the Member States overcome the soaring energy prices. The EUA Dec.21 eventually settled at 59.44€/t, -2.00€/t from Thursday’s close but 1.11€/t (+1.90%) week-on-week.

The power curve prices were mixed over the last session of the week, the short-term and cal22 contracts posting losses in line with the gas and carbon markets, while further on the curve, despite retreating as well, the contracts managed to edged up compared to Thursday’s settlement.

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