Summary at European Close: CWE Holds Onto Losses

The France-Germany July front-month has slightly narrowed today given more pronounced losses in the French market amid lower cooling demand expectations in early July with a downward revision in temperature forecasts. Small gains in European gas prices kept a lid on German front curve losses.

• France Base Power JUL 24 down 2.2% at 47.52 EUR/MWh
• Germany Base Power JUL 24 down 1.3% at 71 EUR/MWh
• EUA DEC 24 down 1.3% at 67.24 EUR/MT
• TTF Gas JUL 24 up 0.7% at 34.17 EUR/MWh
• Rotterdam Coal JUL 24 down 0.7% at 107.65 USD/MT
• TTF has edged slightly higher in the afternoon as easing global supply concerns after the restart of Australia’s Wheatstone LNG, coupled with milder weather forecasts for July are weighed against LNG competition from Asia.
• EU ETS Dec24 is pulling back today amid small declines in European gas prices.
• The latest EU ETS CAP3 EU auction cleared at €66.06/ton CO2e, compared with €68.61/ton CO2e in the previous auction and the lowest since 30 April according to EEX.
• The EU could miss out on almost €100bn of EU ETS revenues if allowances that are being phased out are recycled back into the market and auctioned for the green technology fund rather than being fully removed from the market according to BNEF.
• The EU has invested €2.967bn via the Modernisation Fund from revenues of the European emissions trading system to support 39 energy projects, the EC said.
• API 2 coal prices for July delivery are currently trading at the lowest since 30 April, weighed on by seasonally lower demand, sufficient supplies, high renewables output and pressure from European gas prices.
• The latest Jao CBC July auction between Switzerland and France offered no capacity in the direction of France, while capacity in the direction of Switzerland increased on the month.
• France risks higher power prices and power supply outages if the country was to the exit the European power market, Engie CEO, Catherine MacGregor, said on Sunday, cited by Bloomberg.
• Norway’s government on Friday appointed a committee to determine whether the country should use nuclear energy in the future according to OilPrice.com.
• Norway’s NVE has assessed 26 plans for new power generation projects in the Finnmark region, Norway, and decided to move 12 projects forward in the licensing process, it said.
• Finland’s TSE announced on Monday to close the 120MW Naantali 3 coal unit earlier than previously scheduled, the operator said.