Latest News

European forward curve contracts decline in early trading

German power contracts for the year ahead fell on Friday as a result of a'retraction' in the gas markets after Thursdays late gains.

By 0952 GMT, the German baseload contract for the year ahead was down by 0.1% to 79.95 euros ($94.32). Analysts at Engie EnergyScan said that Thursday's 'late gains' in the German contract for year-ahead were due to a retracement of European gas prices caused by tensions between the U.S. and Iran.

They added that prices on the French side continued to fall due to high temperatures and low spot power prices.

The French equivalent contract was not traded with a range of bids and asks between 50.40 euros and 50.90 euro. The contract was closed at 50.70 euro on Thursday.

The benchmark carbon contract on the European market rose by 0.7%, to 71.47 Euros per metric ton.

The trading of the German and French baseload day-ahead contracts for Monday has not yet begun. On Monday, wind?power was expected to drop sharply in the entire region.

According to LSEG analyst Naser Hahemi, the baseload price in Germany for Monday will be 85.80 Euros/MWh.

LSEG data showed that German wind generation will fall by 14.7 gigawatts on Monday to?12.7 GW while French output will drop by 2.9 GW and 7.1 GW.

The French nuclear capacity fell by six percentage points, to 84% of total?capacity. Three reactors are expected to be taken offline.

EDF, the reactor operator, said that it was expected to be back online Monday after the Flamanville 3 reactor went offline for maintenance on Friday. The test runs were performed with different loads.

LSEG data indicated that power demand in Germany is expected to drop by 230 megawatts on Monday to 57.7 GW while French demand will remain flat at 51.9 GW.

(source: Reuters)