EU Power Pricing Trends | 1 April 2021
European energy prices exhibited strength into the end of March amid forecasts of cold weather for early April and gains in the price of benchmark generation feedstocks. Moreover, carbon EUAs pared virus-driven losses sustained the week before. The gains in European power came in spite of climbing virus rates across the continent and widespread political turmoil over the need for further lockdowns. Gains in the Nordic market were limited by the region’s reservoir levels, which have been bolstered by a period of windy and wet weather.
EU Natural Gas Pricing Trends | 1 April 2021
Cold temperatures forecast for early April guided short-end gas prices across Europe last week, with front-month benchmarks on Europe’s major hubs all pushing higher. Nevertheless, gains were limited as aggregate storage levels across the continent began to reflect March’s busy LNG schedule – total LNG imports to major terminals doubled month-on-month and rose to the highest level since December 2019. Total gas in storage across Europe increased week-on-week as the summer’s huge reinjection effort got underway, supported by the strong LNG schedule.
EU Energy Complex | 1 April 2021
The imminent compliance deadline, as well as strength in global equity benchmarks, saw EUAs close higher for the fifth consecutive month in March. The December-21 benchmark pared all losses sustained the previous week following the extension of lockdown measures across Europe and moved higher as U.S. President Joe Biden’s ambitious infrastructure plan cut through the coronavirus-related caution in Europe to push European and U.S. stock indexes to record levels. Oil prices fluctuated ahead of OPEC and its allies’ March meeting; nevertheless, crude benchmarks ultimately climbed week-on-week as the cartel’s decision to slowly taper output cuts was regarded as confirmation that the global demand picture is more positive than previously feared.
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