The front month, front quarter and front year Nordic baseload futures dropped to record lows this week, as wet and mild weather added to the strength of the region’s hydropower reserves. Norwegian and Swedish hydro levels climbed week-on-week to 90% of capacity, with 150-250% of normal rainfall expected next week.
European gas futures shrugged off bullish, vaccine related sentiment this week, trimming last week’s gains, even as Brent pushed 6.5% higher week-on-week. Rising coal price were, too, unable to lift gas benchmarks higher, with mild weather moderating gas demand and Norwegian and Russian gas flows remaining strong.
Benchmark European stock indexes leapt higher on Monday, reacting to both Joe Biden’s U.S. election success and the pharmaceutical industry’s latest and largest step towards a COVID-19 vaccine. Yet the sudden injection of momentum fizzled out mid-week as stock indexes treaded water into Friday.
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