The power spot prices rebounded yesterday in northwestern Europe, buoyed by forecasts of colder temperatures and dropping wind output. The day-ahead prices averaged 280.23€/MWh in France, Germany, Belgium and the Netherlands, +73.70€/MWh day-on-day.
The EUAs extended their massive rally on Wednesday as option trading and speculators continued to drive the market up towards 100€/t while the surging gas prices provided additional support. The Dec.21 contract climbed up to 90.75€/t before slightly retreating at the end of the session to eventually close at 88.88€/t, +3.97€/t from Tuesday’s settlement. Several participants are however pointing to a potential of significant correction, without anyone being able to say at which point in time and at what level of levels it will occur. Meanwhile, the Commitment of Traders report published yesterday showed that the investment funds reduced further their net long position by 12% last week.
The power forward prices continued to post hefty gains along the curve on Wednesday, tracking the soaring gas and emissions prices.
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