Frankfurt – European forward power prices recovered on Friday from the previous session’s lows, tracking firmer related fuels and CO2 emissions prices.
Oil prices jumped after comments by the energy minister of OPEC member United Arab Emirates sparked hopes of a coordinated production cut.
European coal prices for 2016 were 1.4 percent up at 37.15 dollars a tonne.
German baseload delivery for next year, Cal ’17, was at 21.15 euros (23.66 dollars) per megawatt-hour/MWh, up 45 cents from Thursday’s multi-year low at 20.70 euros.
The equivalent French contract was indicated around 26 euros, up 10 cents, but not yet traded.
But traders said this should not distract from the overall collection of bearish factors – worldwide oversupply and recessionary concerns.
BayernLB wrote in a weekly comment: “A real chart support line cannot be recognised at the moment, making 20 (euros for year-ahead delivery of German baseload) the likely next target. Whether that will hold remains to be seen in such an uncertain environment”.
Front-year EU carbon allowances were 1.3 percent up at 4.80 euros a tonne.
German wind power volumes remain highly volatile and should be more than treble Friday’s level by Monday after a build-up over the weekend, Thomson Reuters data showed.
On Monday, they will likely stand at 12 gigawatts (GW), regaining volumes seen on Thursday.
Temperatures will be steady but with a declining tendency next week.
[pro_ad_display_adzone id=”70560″]
Demand in both countries will likely be overall stable as a decline in Germany should be cancelled out by a gain in France.
German baseload power for Monday stood at 24.5 euros/MWh while the equivalent French contract cost 25.25 euros/MWh. (Reuters/NAN)