German year-ahead increases amid U.S./Iran tensions
On Friday morning, the German power contract for the year ahead firmed slightly, continuing gains from the previous day and tracking a?higher price of gas?. This was due to concerns about tensions between the U.S.
By 0922 GMT the German year-ahead contract was up by 0.90 euro, at 81.90 Euros per Megawatt Hour (MWh), while the French equivalent contract fell by 0.20 Euro to 52.60 Euros/MWh.
Due to fears that tensions between Iran and the United States would escalate and cause supply disruptions, the?German gas price increased sharply along with European 'gas on Thursday.
Analysts at Engie EnergyScan said that "power?prices will likely?to remain strongly influenced?by further developments regarding the U.S./Iran situation."
LSEG data shows that the French baseload contract for the day-ahead market fell 24 euros, to?18.50 per megawatt hour, by 0919 GMT. The German contract, however, had not yet traded.
Over the weekend and next week, temperatures are expected to increase in north-west Europe. In Germany, Belgium, and Austria it is expected that wind output will also increase week-on-week.
"The bearish trends continues into Monday." Xiulan Xiulan, LSEG's power analyst, said that the residual load in Germany, Belgium, and The Netherlands is declining due to stronger?winds and lower demand.
(source: Reuters)
