December 12, 2018 / 2:57 PM / in 2 years

EUROPE POWER-Forwards up as carbon, fuel prices rise

(Recasts with curve price moves, adds CO2 comment, updates prices, Refinitiv supply, demand forecasts)

FRANKFURT, Dec 12 (Reuters) - European power forwards prices moved sharply higher on Wednesday afternoon, reversing morning losses, as coal, gas and carbon prices increased.

* The German baseload contract for 2019 power delivery , Europe’s benchmark, was up 1.3 percent at 53 euros ($60.14) a megawatt hour (MWh). Its French equivalent contract rose 1 percent to 58.45 euros/MWh.

* European December 2018 expiry CO2 emissions rights gained 3.6 percent to 20.89 euros a tonne.

* European delivery API2 coal for 2019 rose 1.8 percent to $89 per tonne.

* Eikon Refinitiv analysts said carbon allowance prices should edge up towards the year-end as holders of long positions expect supply cuts from next year, while developments around Brexit, and the UK’s future participation, will remain an external risk.

* The expiry of EUA Dec-18 options on Wednesday was seen unlikely to trigger CO2 sell-offs as nearly all option holders had covered their exposure.

* Day-ahead prices dropped as German wind turbines were forecast to hike output, set to meet rising demand as temperatures fast approach freezing.

* German baseload power for Thursday delivery fell 5.3 percent to 65.8 euros/MWh.

* The equivalent French contract lost 0.7 percent to 70 euros/MWh.

* French reactor capacity, whose performance is critical in winter as French households mostly heat with electricity, remained at 87.5 percent of the maximum.

* German wind power output will likely rise to 12.6 gigawatts (GW) on Thursday from Wednesday’s 7.1 GW, Refinitiv Eikon data showed.

* German power consumption will edge 300 MW higher to 71.8 GW, while temperatures will fall 1.2 degrees Celsius to 0.5 degrees day-on-day.

* In France, demand will increase by 600 MW to 72.8 GW in the same period, with temperatures dropping by 0.9 degrees to 3.4 degrees.

* Indications for next week point to a warmer weather front, ushering in lower demand.

* Hard coal production from Germany’s two remaining mines will amount to 2.6 million tonnes this year, down from 3.7 million in 2017, mining association GVSt estimated. Germany is ending mining after 200 years of history in the Ruhr valley because imported coal has long been cheaper. ($1 = 0.8812 euros) (Reporting by Vera Eckert; Editing by Dale Hudson)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below