Daily (30.09.2019): European spot power prices seen in a sharp fall on Friday due to strong supply

30/09/2019 11:28 Daily

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Crude oil prices lost ground on Friday, after media reported about a potential reduction of the U.S. investment portfolio into China, raising prospects of an aggravation of the U.S.-China trade tensions. Further pressure came from a contraction in the profits earned by Chinese industrial companies in August. In addition, Saudi Arabia’s strong efforts to bring its oil output back on track sooner than expected continued to weigh on prices. Brent crude fell by 1.3% to $61.91 a barrel, while WTI futures inched down by 0.9% at $55.91 a barrel.

Weaker oil markets and ample storages put pressure on British forward gas prices on Friday. The price for delivery in Q1 2020 declined by 0.6% to 52.88 p/therm. In the meantime, NBP spot spiked by 3.2% to 25.50 p/therm, boosted by reduced pipeline supply from Norway and firmer demand caused by cooler temperatures.

 

Strong renewable and conventional power generation coupled with sluggish demand ahead of the weekend weighed heavily on European prompt power prices on Friday. The price for the German day-ahead power contract slumped by 37.3% to 24.10 EUR/MWh. Concurrently, the equivalent French contract price plunged by 23.8% to 28.37 EUR/MWh.

 

On the curve, electricity prices also retreated on Friday, tracking bearish carbon prices and oil prices, and the downward movements in gas futures. The price for the German power contract for delivery in 2020 decreased by 1.1% to 48.08 EUR/MWh, while the equivalent French contract edged 0.6% down at 50.84 EUR/MWh. 

 

EU carbon prices fell back on Friday amid a weaker energy complex pressured by concerns over a slower global economic growth. The 2020-expiry contract traded 1.3% lower at 25.54 EUR/tonne.

Daily (12.11.2019): French spot power price surged by over 16% on forecasts for higher demand amid colder weather

12/11/2019 11:17:00

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Mongolia exports 32.3 million tons of coal as of first ten months

12/11/2019 10:35:00

Mongolia planned to export 42 million tons of coal in 2019. According to statistics of Mongolian General Customs Administration, Mongolia has exported 32.3 million tons of coal as of first ten months of 2019 which means there is a necessity to export 9.7 tons of coal in order to reach the goal. But the People’s Republic of China appears to maintain its coal import at 200-300 million tons so that the amount of coal export has a tendency to slow down in the last months of 2019 according to Bloomberg.

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NTT to spend 600 billion yen on own grids for power business

12/11/2019 10:25:00

Nippon Telegraph and Telephone has decided to build its own power grids. Japan's largest telecom company plans, beginning in the year ending March 2021, to sell electricity from storage batteries at its roughly 7,300 office buildings around the country, mainly to hospitals and factories.

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