FRANKFURT, Oct 18 (Reuters) - French day-ahead spot power traded at a three-year high on Tuesday morning, with forwards prices also higher on tighter European power supply and firmer coal, carbon and oil markets.
“There is a bullish psychology that could drive up prices further,” one trader said.
Temperatures are due to fall sharply over the next few days against the backdrop of tight Nordic power supply.
French day-ahead baseload power, at 73 euros ($81.77) per megawatt-hour (MWh), was last at this level in early December 2013. The equivalent German price, though down on the day at 40.6 euros/MWh, is around its highest since mid-winter January peaks.
Forwards prices are just below most recent highs, with Germany’s Cal ‘17 up 1.6 percent at 32 euros/MWh. ($1 = 0.8928 euros) (Reporting by Vera Eckert; Editing by David Goodman)