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Energy Markets
20.02.2025
European spot power prices plummeted sharply on Wednesday. The German spot price fell more than 14% to nearly 95 EUR/MWh, driven by a milder forecast and enhanced renewable output. In a similar vein, the French spot price dropped over 15%, settling at 99.49 EUR/MWh, bolstered by increased nuclear generation.
Forward power contracts also continued to decline on Wednesday, following the bearish trend in gas prices. The German Cal-2026 contract fell by 1.2%, closing at 88.65 EUR/MWh, while the French Cal-2026 decreased by 1.6%, finishing at 65.43 EUR/MWh.
European carbon prices dropped on Wednesday as market sentiment shifted towards energy security and stable gas supply, driven by expectations of reduced demand for carbon allowances. This shift follows a draft EU proposal aimed at extending gas storage regulations and introducing flexible refilling targets. EUAs expiring in Dec-2025 fell by 2.3%, settling at around 74 EUR/tonne.
Oil prices increased slightly on Wednesday due to ongoing supply uncertainties, including the possible delay in OPEC+ barrel returns, disruptions from cold weather in North Dakota, and risks associated with EU sanctions. However, the anticipated resumption of oil flows from Iraq's Kurdistan region is alleviating these supply concerns, thereby limiting price increases.