Curve contracts lower with CO2, spot up on fundamentals

FRANKFURT, Sept 11 (Reuters) - European power contracts for year-ahead delivery on Tuesday were mostly lower, with the exception of French 2020 delivery, as carbon prices turned south, while prompt power gained on lower supply coupled with flat demand.

* German power for 2019 delivery, the European benchmark, dropped by 2.2 percent from the previous close to 56.25 euros ($65.09) a megawatt hour (MWh), having set a fresh contract high on Monday. .

* Traders said the uptrend, which has pushed German forwards to their highest level since the fourth quarter of 2011, seemed due to a brief break, also noting intra-curve adjustments as individual contracts fell out of line with some others.

* The French Cal '19 delivery position shed 1.6 percent from its all-time intraday record of 63.5 euros to stand at 62 euros.

* The French Cal '20 contract was at a record high of 55.7 euros, up 2.7 percent, well below 2019..

* European December 2018 expiry carbon allowances were down 4.5 percent at 24.1 euros a tonne.

* Carbon has risen this year on EU reforms that aim to tighten supply from 2019. Buyers believe they must cover early, attracting speculators to pile into the market as well.

* European delivery AP12 coal for 2019, a big generation cost input, was 0.5 percent up at $95.95 a tonne.

* Prompt power prices were up on higher expected wind supply, tighter French nuclear power availability and unchanged consumption.

* The German baseload contract for Wednesday traded at 63.85 euros, up 11.5 percent. Its French equivalent was at 68.75 euros, up 10.9 percent.

* A ThomsonReuters forecast showed German wind power production will likely decline to 9.2 gigawatts (GW) day-on-day after coming in at 12.5 GW on Tuesday.

* In France, nuclear power availability stood at 72.7 percent of total capacity, down two percentage points on the day. POWER/FR]

* EDF's Nogent 2 reactor was in an unexpected outage on Tuesday, after a recent 2-month shutdown.

* In eastern Europe, the Czech year-ahead contract lost 0.8 percent to 58.05 euros. The day-ahead Czech baseload did not trade after Tuesday delivery last closed at 66.5 euros. ($1 = 0.8642 euros) (Reporting by Vera Eckert; Editing by Mark Potter)

2018-09-11 14:26:56

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