All eyes on German stores as power tracks volatile gas

摘要

European power prices continued to track volatile gas markets in thefirst half of November with levels rebounding Nov. 12 after falling to asix-week low at the start of the month. German month-ahead powerrebounded to Eur155/MWh after falling below Eur140/MWh Nov. 1 withNovember’s spot average on track to exceed October’s all-time high,exchange data showed. “90% if not 100% [of power] is gas driven inthis moment,” an Italian power trader said. S&P Global Platts assessedTTF front-month gas at Eur74.80/MWh Nov.11, up from Eur64.30/MWhOct. 29 and compared to the record-high Eur117.30/MWh close on Oct.5. European gas markets remained volatile with all eyes on flows fromRussia via pipelines through Ukraine and Belarus. Russian PresidentVladimir Putin on Oct. 27 called on Gazprom to start filing its Germanstorage once domestic injections were completed Nov. 8. It wasunclear Nov. 12 whether this had started yet. Meanwhile an escalationof the migrant crisis on the Belarus border prompted threats to blockgas transit flows by President Lukaschenko on Nov. 11. Coal prices,which hit a three-month-low Nov. 1 below $100/mt, rebounded slightlywith Platts assessing Cal-22 ARA at $106.50/mt, down 42% from itsOct. 5 peak. EU carbon allowance prices traded Nov. 12 above Eur63/mt, just below the Eur65/mt peak set Oct.6 with EUAs less volatile thanfuel prices.