The European power spot remained once again at the same level yesterday as forecasts of stronger solar generation and weaker demand offset the higher gas prices. The day-ahead prices hence averaged 239.65€/MWh in Germany, France, Belgium and the Netherlands, +3.65€/MWh day-on-day.
The carbon prices plummeted by 5% yesterday afternoon following the quarterly options’ expiry as many participants receiving Dec.22 EUAs from exercised in-the-money calls immediately sold them while traders with positions not exercised could sell their hedges. The large prices’ fall was also attributed to the market’s low liquidity, with even low volumes proposed able to trigger noticeable moves. The EUA Dec.22 eventually closed the day at 76.60€/t, -4.07€/t from Tuesday’s settlement. Prices are rebounding this morning, but the sell-off might resumed this afternoon when the US markets open.
In the meantime, the power forward prices tracked the sudden rise of gas contracts after Putin announced its intention to charge the gas deliveries to “unfriendly countries” in rubles, triggering another wave of panic buying despite still unclear effects on the market.
Get more analysis and data with our Premium subscription
Ask for a free trial here
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.