German gas forward curve contracts increase on tensions between the US and Iran
German power contracts for the year ahead tracked higher gas costs on the back of concerns about supply disruptions due to the rising tensions between the U.S.
By 1030 GMT, the German year-ahead?baseload price had risen 5.2% to 81.30 Euros ($95.88 per megawatt hour). The?rest? of the German contracts traded along the curve also rose in early trading.
The French equivalent, which closed at 51.05 Euros/MWh, was not traded. The front-month and fourth-quarter 2026 baseload contracts, however, were lower, indicating that the French curve wasn't as affected by the increase in gas prices.
The benchmark carbon contract on the European market rose by?1.2%, to 72.43 euro per metric ton.
Analysts at Engie's EnergyScan say that carbon prices have stabilized and are starting to recover a few of their recent losses. This is exacerbated by the evidence of U.S. Military Logistics movement in the Middle East, which has renewed?fears about an escalation in the region with Iran.
They said that the Hormuz Strait was a key passageway for Qatari LNG, and that a blockade could be devastating to the European gas balance in the months ahead.
Russia stated on Thursday it is witnessing an unprecedented increase in tensions around Iran, as the U.S. moves?military resources into the Middle East. The Kremlin also urged Tehran and other parties to exercise caution and restraint.
The spot price of the German baseload contract for day-ahead fell by 2.8%, to 88.90 Euros/MWh. However, the equivalent French price rose by 3.4% to reach 42.90 Euros/MWh.
LSEG data shows that German wind generation will fall by 2.7 GW this Monday to 24.9 GW. French output will also drop by 2.7 GW at 9.9 GW.
The French nuclear capacity remained unchanged at 88%.
LSEG data revealed that power demand in Germany is expected to drop?by 1.2 GW this Friday to 64.8 GW while French demand will be down by 1 GW to 61.8 GW. $1 = 0.8480 Euros (Reporting and Editing by Alexandra Hudson).
(source: Reuters)
