Dec 20, 2024

Daily (20.12.2024): EUAs surged by 4% on Thursday amid bullish gas prices and speculative buying

Oil prices retreated on Thursday a day after the Federal Reserve indicated a slower pace for interest rate cuts next year, with Brent crude falling by 0.7% to close at $72.88 per barrel. Meanwhile, WTI crude declined by 1.7%, settling at $69.38 per barrel.

The UK near-term gas price increased by over 7%, closing at 106.40 GBP/MWh, supported by a drop in wind generation and colder weather. On the forward curve, the NBP Sum-2025 contract surged by nearly 5%, closing at 103.43 GBP/MWh, driven by ongoing uncertainty surrounding Eastern European supplies and further storage withdrawals.

European spot power prices skyrocketed on Thursday, driven by lower renewable generation and unplanned nuclear outages. The German spot price soared by 47%, closing at 76.37 EUR/MWh. Similarly, the French spot price spiked by 36%, closing at 80.33 EUR/MWh.

On the forward curve, the French Cal'2025 contract rose by nearly 6%, closing at 71.09 per EUR/MWh, while the German Cal'2025 contract jumped by 5%, ending at 91.38 EUR/MWh. Both contracts were buoyed by a bullish energy complex.

The European carbon prices increased by 4% on Thursday. The EUA Dec-2025 contract closed at 67.69 EUR/tonne, supported by bullish gas prices and strong buying interest from speculators.