June 27, 2018 / 2:39 PM / 3 months ago

EUROPE POWER-Curve rises in afternoon as fuels, carbon extend gains

(Recasts to lead with curve gains, updates all prices)

FRANKFURT, June 27 (Reuters) - Forward electricity contracts in the European wholesale market rose strongly on Wednesday afternoon when crude oil contracts jumped on supply losses, falling stocks and developments overshadowing Libya’s and Iran’s export readiness.

* Oil is considered the “lead currency” in the energy sector and the gains, with U.S. crude hitting its highest level in over a month, pushed up the UK gas curve.

* Carbon and coal extended morning gains, partly for reasons of their own.

* Germany’s Cal’19 baseload power went up by 1.9 percent to 42.45 euros ($49.28) per megawatt hour, a two-week high, and the contract’s French equivalent clocked up 2.2 percent to 47.25 euros.

* European AP12 coal for 2019, a benchmark price especially for German thermal generators buying from the world market, was up 1.4 percent at $87.95 a tonne.

* The contract has gained 4.3 percent over the last week, reconnecting with rallies earlier this month, due to Chinese demand. But it is short of a 2018 high of $90.6 on June 13.

* European carbon permits prices for December 2018 expiry were up 1.3 percent at 15.22 euros a tonne.

* In the spot market, German OTC baseload for Thursday dropped by 3.6 percent to 45.25 euros /MWh while the equivalent French contract edged 0.2 percent up to 47 euros.

* Thomson Reuters data showed German wind power output was likely to increase to 7.9 gigawatts (GW) day-on-day from 4.3 GW, with daily average of between 2.8 to 9.5 GW predicted over the next fortnight.

* Day-on-day power demand was seen moving up by 400 MW in Germany to 62 GW and unchanged in France at 47.2 GW, while the impact of holidays weighed on consumption prospects for the coming weeks.

* As for the mid-term prices outlook, the coming weeks posted small gains on Wednesday. Broker Marex Spectron’s analyst Giacomo Masato said he was bearish, citing more renewable supply and a lack of peaking demand.

* “The trend is for high-pressure from the Nordic to move to central Europe in July, which will not be exceptionally strong,” he said. “But it means increased solar output in Germany, while wind-wise, there will not be much difference.”

* In eastern Europe, Czech day-ahead power nearly doubled to 46.75 euros after an exceptionally low close of 24 euros on Tuesday. Czech year-ahead power traded 2.7 percent higher at 43.8 euros.

$1 = 0.8615 euros Reporting by Vera Eckert; editing by David Evans and Alexandra Hudson

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