German front-month power
German September power was last seen up EUR 2.10 at EUR 91.05/MWh on the EEX exchange, down from an intraday high of EUR 92.35/MWh, while the gas front month on the Dutch TTF hub was EUR 1.23 higher at EUR 42.80/MWh on the Ice exchange and the Dec 21 EUA contract gained EUR 1.32 at EUR 55.70/MWh.
Recovery in the gas market and technical strength on the carbon market were leading the way for German power but the current rebound could dissipate over the next week, said one source.
Prices had overheated in the past year and there was “still more space to go down”, the trader said.
“We could lose EUR 3-4 for [German] power and EUR 1-2 for the gas front years.”
Volatile week
Front-month power had lost 9% in a volatile trading week, following the announcement on Thursday Gazprom would deliver gas to Europe via the new Nord Stream 2 pipeline to Germany.
However, some market participants remained sceptical about when the 55bcm/year pipeline would start-up to alleviate concerns about low European storage going into the winter.