Carbon prices continue to fall amid investor selling
European carbon contracts continued to lose ground on Thursday, falling below the mid-December level due to new liquidations of speculative positions.
Benchmark European carbon permits fell 2.3%, to 84.58 euro ($101.23) per metric tonne as of 0919 GMT. Carbon prices dropped?on Wednesday?as speculative investors began to sell out their long positions. This, along with falling gas prices, added to the bearish mood, Mind Energy analysts stated.
The extended losses on Thursday have brought the contracts to close to their lowest level in two months, they said.
The German baseload for the year ahead was also lower, falling 1.2% to 84.8 Euros/MWh. As of Wednesday's closing, the French 2027 baseload had not been traded with a range between 49.25 and 50.50 euros/MWh.
The French day-ahead baseload dropped 15.2%, to 101.35 Euros per megawatt hour (MWh).
The German baseload day-ahead was not traded after it closed at 136.75 Euros/MWh on Thursday.
Analysts at Engie EnergyScan stated that "power markets remain firm, despite the near-term warm conditions and winds?easing demand," as forecasts of possible colder weather in February related to polar vortex activity limit any scope for a sustained price drop.
LSEG data shows that German wind power is expected to increase by 2.1 GW this Friday to 24 GW. French wind power will rise?5.1 GW from 11.3 GW. Germany's wind output dropped by 4% despite record capacity expansions in 2025. Forecasts for continued below-average weather into early 2026 could lead to higher fossil fuel generation, costs, and emissions during the peak winter demand.
French nuclear capacity dropped by three percentage points to 85%. The capacity of the Golfech '2 nuclear unit has been reduced to 35 MW due to a problem during a coupling testing on Wednesday.
LSEG data shows that Germany's demand for power fell by 1.5 GW Friday to 66.2 GW. French consumption dropped 3.7 GW from 64.7 GW.
(source: Reuters)
