EUAs rose above 52€/t on strong bullish momentum and spiking gas prices

As expected, the European power spot prices rose further up yesterday amid forecasts of falling temperatures and renewable generation. The day-ahead prices in Germany, France, Belgium and the Netherlands all reached 72.17€/MWh, +14.26€/MWh on average from the previous day and just above the clean gas costs.

The EUA prices climbed to new record above 52€/t yesterday as the bullish momentum from Friday induced by the EC’s dismissing the possibility of a market intervention remained strong, while the soaring gas prices and the speculators attempting to trigger some short-covering from the short players provided additional support. Meanwhile, the European Commission announced that the Total Number of Allowances in Circulation will be  published tomorrow. The TNAC represents the total surplus of EUAs held by the market participants once the allowances for the previous year’s emissions surrendered and is used to calculate the volume withheld by the MSR from the auction from next September.

Strongly lifted by the surging gas and carbon markets, the power prices posted massive gains along the curve over the first session of the week, with most contracts rising by more than 2€/MWh from Friday’s settlement.