Spot Market: Germany - Prompt sees prices up; curve matches oil
The German prompt market was driven by fundamentals over the past fortnight, as maintenance and weather strengthened prices. On the far curve, contracts followed oil.
Liquidity was relatively low on the EGT market on 14–18 September from the prompt to the far curve. It was thought, however, that the introduction of new market areas in Germany on 1 October might help boost liquidity in future, and that this was already affecting trading of contracts such as Calendar Year ’10.
Norwegian flow disruptions, which led to some reportedly aggressive buying on continental markets, and continued maintenance resulted in a bullish market. As a result, the EGT Day-ahead contract kicked off the following week with an unusual €0.015/MWh premium over the TTF. After the Interconnector came back on 23 October, the EGT Day-ahead contract shed some value. It recovered some of this towards the end of the week, helped by predictions of a cold snap.
The far curve tracked oil’s mixed rise and fall for most of the period, while liquidity remained limited. The EGT saw no trade on the curve from Winter ’09 outwards on 24 September. On the BEB, Winter ’09, Summer ’10 and Cal ’10 did not trade for most of the week of 21 September.
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