EU Power Pricing Trends | 16 April 2021
An overwhelmingly bullish energy market backdrop underpinned across-the-board gains in European annual power contracts last week. Key generation feedstocks, gas and coal, pushed significantly higher week-on-week amid high European thermal generation requirements alongside gains in oil and carbon benchmarks. The Nordic benchmark posted the strongest gains for the second consecutive week amid a 12% forecast drop in hydrological balances expected for the week ahead, as well as strong short-end prices in key export markets.
EU Natural Gas Pricing Trends | 16 April 2021
Temperatures were a third lower than the 20-year average across western Europe last week which, alongside weak wind generation, saw aggregate European gas storage levels fall week-on-week; exacerbated by a notable drop in southbound gas flows from Norway. Consequently, monthly and annual contract across Europe’s major hubs pushed substantially higher week-on-week, supported further by a jump in benchmark crude and coal prices. A consistently strong LNG schedule and the promise of milder weather across western Europe provided some downside price pressure, but an insufficient amount to offset the wider, bullish narrative.
EU Energy Complex | 16 April 2021
European coal posted the strongest week-on-week gains since late November 2020 as cool and calm temperatures prevailed across Europe and global oil prices rallied midweek. Strong Chinese demand provided additional price support to global coal as their economic recovery continues to beat estimates, posting record growth in Q1 2021. Brent pushed substantially higher on the week amid the strong Chinese economic data and similarly positive noises out of the United States. EUAs continued to receive support from the imminent compliance deadline; underpinning the European energy market dynamic.
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