Rangebound EUAs despite gains in the gas and power markets

The power spot prices were mixed in northwestern Europe yesterday, driven down in Germany and the Netherlands by forecasts of stronger wind output but slightly up in France and Belgium amid expectations of increased peak power demand. The day-ahead prices hence averaged 189.09€/MWh in the four countries, -3.58€/MWh day-on-day.

The EUAs traded rangebound on Wednesday, temporarily climbing above 60€/t in the morning as the gas market posted some gains, but falling back at the end of the session amid retreating fuels and a bearish opening of US equities. The EUA Dec.21 eventually settled at 58.93€/t, +0.14€/t from Tuesday’s close. Meanwhile, the Commitment of Traders report showed a 28% decrease in the investment funds’ net long position last week, unsurprisingly suggesting they were behind the significant retreat of the emissions prices to cover for the massive rise of margin calls in the gas market.

In other regulatory news, according the European Commission stated its intention to ask the European Securities and Markets Authority (ESMA) for an examination of trading behaviors in the carbon market and produce a report by mid-November, in order to assess if the market requires “further regulatory actions”.

Boosted by the rising gas prices and early upward move of emissions, the power prices posted moderate gains along the curve yesterday.

EnergyScan - Power market news
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