May 21, 2025
Daily (21.05.2025): EUAs increased on Tuesday amid a technical rebound and progress on EU–UK carbon market linkage
Crude oil prices closed marginally lower on Tuesday, weighed by new data indicating a weakened economic outlook for China, the globe’s top crude importer. However, ongoing geopolitical uncertainty surrounding U.S.-Iran and Russia-Ukraine developments capped losses.
Hence, Brent crude slipped by 0.2% to $65.38 per barrel. Meanwhile, WTI crude fell by around 1% to $62.03 per barrel.
The start of maintenance works in Norway lent support to the British spot gas price on Tuesday. As a result, the NBP spot price surged by 7.5% to 89.80 p/therm.
Further along the curve, the Winter 2025 delivery contract climbed by 3.8% to 97.83 p/therm, as the call between US President Trump and Russian President Putin failed to make progress on a ceasefire in Ukraine.
European spot power prices moved in opposite directions on Tuesday. The German spot price dropped by over 21% to 71.35 EUR/MWh driven by forecasts of a threefold increase in wind power output. In contrast, the French spot price surged by nearly 51% to 33.77 EUR/MWh amid expectations of higher peak demand.
On the forward curve, prices increased in line with stronger gas and carbon prices. As a result, the German Cal-2026 contract rose by almost 3% to 90.30 EUR/MWh. The French similar contract soared by 4.4% to 60.47 EUR/MWh.
European carbon prices rebounded on Tuesday following an agreement between the UK and EU to work toward linking their emissions trading systems and mutually waive carbon border taxes under a wider post-Brexit arrangement. As a result, EUAs expiring in Dec-2025 hiked by nearly 4% to 73.18 EUR/tonne.
Hence, Brent crude slipped by 0.2% to $65.38 per barrel. Meanwhile, WTI crude fell by around 1% to $62.03 per barrel.
The start of maintenance works in Norway lent support to the British spot gas price on Tuesday. As a result, the NBP spot price surged by 7.5% to 89.80 p/therm.
Further along the curve, the Winter 2025 delivery contract climbed by 3.8% to 97.83 p/therm, as the call between US President Trump and Russian President Putin failed to make progress on a ceasefire in Ukraine.
European spot power prices moved in opposite directions on Tuesday. The German spot price dropped by over 21% to 71.35 EUR/MWh driven by forecasts of a threefold increase in wind power output. In contrast, the French spot price surged by nearly 51% to 33.77 EUR/MWh amid expectations of higher peak demand.
On the forward curve, prices increased in line with stronger gas and carbon prices. As a result, the German Cal-2026 contract rose by almost 3% to 90.30 EUR/MWh. The French similar contract soared by 4.4% to 60.47 EUR/MWh.
European carbon prices rebounded on Tuesday following an agreement between the UK and EU to work toward linking their emissions trading systems and mutually waive carbon border taxes under a wider post-Brexit arrangement. As a result, EUAs expiring in Dec-2025 hiked by nearly 4% to 73.18 EUR/tonne.