The European power spot prices inched down yesterday on lower clean gas costs and forecasts of slightly increased wind production, temperatures and French nuclear availability. The day-ahead prices averaged 225.36€/MWh in Germany, France, Belgium and the Netherlands, -8.71€/MWh day-on-day.
In the meantime, the uncertainties around the rouble payment continued to buoy the energy complex, the power forward prices posting hefty gains along the curve tracking the bullish carbon and gas markets. France baseload calendar prices continue to diverge from the rest of NW Europe on the back of a worsening nuclear generation outlook, moving closer to the €300/MWh mark for Cal 23 delivery and widening further their premium to benchmark German baseload prices to another record high for Cal 24 delivery (see chart).
Another surge marked the carbon market on Thursday, driving prices up to 91.99€/t mid-afternoon. The sudden upward move was once again attributed to technical buying triggered by a strong morning auction and fueled by the benchmark contract breaking several key resistances levels. Some participants also pointed to a possible additional support from increased option hedging as the underlying Dec.22 rose. The market’s bullishness was however only temporary as prices were seen retreating at the end of the session, weighed by a worsening economic outlook and dropping equities.
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