Daily (25.09.2020): German power spot hiked by over 8% on Thursday due to weaker wind generation

25/09/2020 10:10 Daily

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Crude oil futures finished slightly higher on Thursday, buoyed by tighter U.S. crude supplies, while the alarming comeback of the pandemic in Europe restrained gains. Hence, Brent crude edged 0.4% higher, to settle at $41.94 a barrel. Meanwhile, U.S. WTI crude rose by 1%, to end at $40.31 a barrel.

Weaker demand for gas from electricity generation plants due to less need for air conditioning dragged down British near-term gas prices on Thursday. As a result, the gas price for day-ahead delivery lost 0.6%, to settle at 32.30 p/therm. Further along the curve, the gas price for year-ahead delivery declined by 1% to 36.99 p/therm despite bullish carbon markets.

 

European spot electricity prices diverged on Thursday, with the German day-ahead power surging by 8.4% to 41.37 EUR/MWh due to lower wind power generation. The French equivalent power price fell by 3.9% to 41.93 EUR/MWh amid stable nuclear availablity.


Year-ahead power prices weakened amid volatility in the carbon market. Thus, the German Cal’21 power decreased by 1% to 41.07 EUR/MWh, while the similar contract in France settled at 46.99 EUR/MWh, posting a 0.4% daily loss.


EUAs expiring in 2021 added 1.1% to 26.79 EUR/tonne in a volatile trading on Thursday, neglecting another weak auction result and wider market weakness.

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26/11/2020 10:33:00

Crude prices hit an eight-month high on Wednesday, supported by a drop in US oil stocks, progress on the coronavirus vaccine and optimism ahead of the next OPEC+ summit. As such, Brent crude rose by 1.6% to $48.61 a barrel, while WTI oil ended 1.8% higher at $45.71 a barrel.

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EU approves German coal phase-out tender mechanism

26/11/2020 08:42:00

The European Commission today said Germany's coal phase-out tender mechanism to compensate operators for early closures promotes climate objectives and is in line with state-aid rules. But it said it will investigate the mechanism for closing lignite-fired plants.

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UK gas tariff changes add to 1Q21 uncertainty

26/11/2020 08:38:00

Looming and as-yet unquantified changes to UK gas transmission capacity charges expected early next year have reduced the visibility of the cost of moving gas in and out of the UK.

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