Germany/Austria: German markets turn bullish on rising power prices
In Germany, NCG and GASPOOL prices rose across the board on Monday, with Day-ahead contracts posting the most significant gains.
Given the mild temperatures, most German traders were surprised by the high prompt levels, but pegged them on a general bullish sentiment in the market due to the expected political consequences of the Green Party's success in the Baden-Württemberg local election. On Monday morning, concerns about the Greens' anti-nuclear stance caused German power prices to soar to their highest level since August 2008 (see separate story).
Gas prices, however, resisted this movement early in the session, with NCG Day-ahead reaching an intra-day low of €23.45/MWh on Monday morning. But, at the close, the contract had gained €0.675/MWh session on session, and settled at €24.60/MWh. GASPOOL Day-ahead posted the same gain and closed at €24.40/MWh.
While the NCG front month, Q2 '11 and Summer'11 remained less affected by the bullish movement, the far curve showed more significant gains, with Calendar Year 2013 rising €0.60/MWh session on session.
In Austria, the front month traded in line with NCG, closing about €0.20/MWh above Friday's level. Baumgarten Day-ahead, however, resisted the German hub's upwards move, narrowing the spread with the NCG contract to about €1.40/MWh. JR
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