The CO2 market remains volatile. Warmer weather in beginning of June might decrease power demand with higher solar generation. However, on the other side, wind generation should decline. Oil grew as well due to higher demand expectations due to loosening anti-COVID measures in many countries.
Czech Republic & Slovak
European annual power prices moved lower last week as carbon EUAs continued their descent. Higher oil prices affected the parity between the free-floating European benchmark hub prices and oil-indexed gas from north Africa, while higher coal prices supported the economics of gas- fired power generation.
Europe
Spot power prices increased last week amid a 40% week-on-week drop in UK wind turbine productivity. Despite a drop in renewable generation output and ongoing maintenance at Norwegian gas fields, gas prices pulled back 7% last week. Global coal prices were lifted higher last week as news broke regarding the halting of operations at a key Colombian mining facility.
United Kingdom
The market declined after the opening of the UK carbon trading system, as did natural gas after U.S. sanctions against the Nordstream 2 pipeline's parent company. The price of oil fell following progress made in Iranian-American negotiation.
France
Electricity prices were volatile this week. CO2 prices collapsed by over 7% a day before the British started their own trading system. Gas prices fell significantly, by over 6%, partly due to positive development of the Nordstream 2 pipeline. Coal rose slightly due to increased demand, and oil fell significantly following financial markets.
Germany
UK power prices moved substantially lower last week, both at the short and long end of the price curve. Last week saw the first drop in EUA prices since late March, and the largest drop since January. Caught up in the inflation debate was Brent, which fell amid the risk-off mood which characterised financial markets.
United Kingdom