A sharp drop in wind-generated power, in addition to reduced nuclear output lifted UK day-ahead prices significantly higher last week. Heating demand fell ~30% last week as average temps rose sharply across the UK. The European carbon benchmark pushed 12% higher week-on-week amid soaring gas prices and substantial speculative interest.
United Kingdom
This week saw moderate pull-backs in LMP averages in ERCOT and PJM, while the remainder of the ISO footprint remained relatively flat. In general, conditions remain quite typical for the shoulder period.
United States
European power generators are facing a vicious cycle of rising costs which is translating into record-high prices for power futures. Short and long-run dynamics pushed European gas benchmarks substantially higher last week. Carbon EUAs jumped a further 12% last week, the largest weekly gain since early February.
Europe
US natural gas inventories increased by 71 Bcf for the week ending May 7, compared with the five-year (2016–2020) average net injection of 82 Bcf and the market consensus of 74 Bcf. Working gas stocks total 2,029 Bcf, which are 72 Bcf lower than the five-year average and 378 Bcf lower than last year at this time.
United States
CO2 price hit a new fresh historical maximum and continues to do so even after the compliance season. Brent increased slightly while coal saw a significant increase in price. Near and far-curve markets grew significantly WoW. The electricity market was driven by bullish CO2, gas, and coal.
Czech Republic & Slovak
The most significant week-over-week LMP movements were seen in ERCOT, where last week's moderate volatility returned to more typical levels, and also in NYISO Zone A, where settlements finally showed a bit of life for the first time in weeks.
United States