France: Day-ahead closes well above Feb
Increasingly colder temperatures continued to drive prompt prices upwards in France.
PEG Nord Day-ahead gained €1.15/MWh session on session, meaning it has now risen €3.35/MWh since last Friday. The contract opened at €16.20/MWh and went as high as €16.90/MWh midway through the session. It finished virtually level with the German hubs, but at a €1.00/MWh premium to its equivalent at the TTF, which was said to have experienced a "classic squeeze" on a volatile day.
As is the case in neighbouring markets, February still sits at a noticeable discount to Day-ahead, this spread rising to €1.15/MWh on Wednesday. Traders expected that it was more likely that the front month would have a bearish influence on Day-ahead than the other way around. "The prompt is perhaps too high now. I'd have thought it will rebound slightly tomorrow, not least because February is traditionally more expensive," said one trader.
PEG Sud Day-ahead traded at parity to PEG Nord Day-ahead for most of the session, closing at the same level as its northern counterpart.
Summer '10 was virtually flat day on day, losing just €0.05/MWh to close at €14.05/MWh. CS
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