The most noteworthy thing since our last issue of Focus is that the weather forecasts have now changed. January looks set to be dry and cold. The Nordic forwards therefore also experienced a significant price climb between Christmas and the New Year, when it became clear that a weather change was being forecast. The Q2-18 contract is now the immediate quarter forward and closed at EUR 22.85/MWh on 30 December. The YR-19 contract climbed to EUR 26.07/MWh. The high price level in the fuel markets and carbon emissions allowance market gave additional bullish momentum to an already climbing market.
Read Focus here.
The energy markets have experienced a week of further price falls, and the otherwise steadily climbing carbon emissions market has shown that the higher the climb, the further there is to fall, and the fall could be significant.