Apr 9, 2025
Daily (09.04.2025): Forecasts of doubling wind generation weighed on spot power contracts on Tuesday
Ongoing demand concerns, coupled with escalating U.S.-China trade tensions, weighed on crude oil prices on Tuesday. President Trump's threat of a 50% tariff on China unless it reversed recent retaliatory actions led to a strong rebuttal from Beijing.
Hence, Brent crude dropped by over 2% to $62.82 per barrel. Meanwhile, WTI crude declined by nearly 2% to $59.58 per barrel.
Speculation about a 90-day tariff pause weighed on The British spot gas price on Tuesday, although the rumour was later dismissed by the White House. As a result, the NBP spot price slipped by 0.2% to 87.20 p/therm on Tuesday. Additionally, losses were capped by unplanned outages at Norway’s Aasta Hansteen and Dvalin fields, which reduced supply by 15.7mcm/day.
Further along the curve, the Winter 2025 delivery contract slumped by 2.3% to 96.45 p/therm, as US-China trade tensions raised expectations of increased US cargoes to Europe, thereby boosting European LNG supply.
European spot power prices plunged on Tuesday, as forecasts showed wind power output to more than double. The German spot price tumbled by over 7% to 91.56 EUR/MWh. Meanwhile, the French spot price plummeted by around 43% to 34.67 EUR/MWh, due to improved weather temperatures.
On the forward curve, European power prices fell, driven by economic uncertainties. The German Cal-2026 contract dipped by 1.4%, closing at nearly 81 EUR/MWh. Meanwhile, the French Cal-2026 slumped by 2.2% to around 62 EUR/MWh.
European carbon prices extended recent losses on Tuesday, as ongoing tariff concerns triggered a wave of aggressive selling. Consequently, EUAs expiring in Dec-2025 fell by 1.2% to around 62 EUR/tonne.
Hence, Brent crude dropped by over 2% to $62.82 per barrel. Meanwhile, WTI crude declined by nearly 2% to $59.58 per barrel.
Speculation about a 90-day tariff pause weighed on The British spot gas price on Tuesday, although the rumour was later dismissed by the White House. As a result, the NBP spot price slipped by 0.2% to 87.20 p/therm on Tuesday. Additionally, losses were capped by unplanned outages at Norway’s Aasta Hansteen and Dvalin fields, which reduced supply by 15.7mcm/day.
Further along the curve, the Winter 2025 delivery contract slumped by 2.3% to 96.45 p/therm, as US-China trade tensions raised expectations of increased US cargoes to Europe, thereby boosting European LNG supply.
European spot power prices plunged on Tuesday, as forecasts showed wind power output to more than double. The German spot price tumbled by over 7% to 91.56 EUR/MWh. Meanwhile, the French spot price plummeted by around 43% to 34.67 EUR/MWh, due to improved weather temperatures.
On the forward curve, European power prices fell, driven by economic uncertainties. The German Cal-2026 contract dipped by 1.4%, closing at nearly 81 EUR/MWh. Meanwhile, the French Cal-2026 slumped by 2.2% to around 62 EUR/MWh.
European carbon prices extended recent losses on Tuesday, as ongoing tariff concerns triggered a wave of aggressive selling. Consequently, EUAs expiring in Dec-2025 fell by 1.2% to around 62 EUR/tonne.