France Energy Pricing Trends - August 2021

Market Intelligence :: Monthly Energy Reports :: France

Electricity – EEX Baseload Futures

The month of August is marked by the accelerating rise in electricity prices.  At this rate, the all-time record  reached in August 2008 (CAL BL Y+1 at 93.50 €/MWh) will be reached in short order. The combined increases in the price of CO2, which is also breaking records, gas and coal explains this situation. As compared with November 2020, the CAL BL Y+1 has increased by around 50 €/MWh (+115%).  Prices stood at 79.15 €/MWh at the start of the month as compared against 89.65 €/MWh at the end (+13%).

Carbon – EUA Futures

In mid-August, the market experienced a brief decline following expectations that the Fed would drive a hard line on monetary policy. Unfortunately, this didn’t last. The price of carbon closed at 60.27 €/t (another all-time high) – all in all, a 14% increase during the month of August.

Natural Gas – EEX PEG Futures

Gas continues to rise uncontrollably. The level of storage has improved in France (84%) but remains low at the European level, raising fears about supply in the event of a harsh winter. Technical problems in Norway and Hurricane Ida, which led to cuts in the shipments of LNG earmarked for Europe, are creating additional tensions for the market.  The CAL 22 closes on August 31rst at 33.94 €/MWh, an increase of 22% compared to the start of the month. CAL 23 meanwhile is up 14%, reaching 23.20 €/MWh Monday before last.

Fuel – London Brent Spot 

Unlike other commodities, the price of oil has decreased during most of August.  However, the last week was marked by a recovery in Brent prices.  This increase is driven by the after effects of Hurricane Ida, which disrupted production in the United States, and market optimism about demand.  The price of a barrel of Brent crude oil dropped by 1% to % overall, settling at 71.68 $/bbl on August 31rst vs. 73.21 $ at the beginning of the month.