Wholesale power contracts in Europe declined across the curve on Tuesday, with the year-ahead contracts shedding around Eur1/MWh from Monday's close, driven lower by falling carbon prices.
The benchmark European power contract -- German year-ahead Calendar 2019 baseload -- fell Eur1.36 on the day to trade at Eur51/MWh in the European morning Tuesday on EEX. Similarly, the French and Italian year-ahead contracts fell around Eur1 to change hands at Eur55.75/MWh and Eur68.75/MWh, respectively.
On Tuesday, the EU carbon allowances for December 2018 delivery plunged 27 cent on the day for the third consecutive day to trade at Eur18.32/mt, the lowest since mid-August.
Spanish curve prices fell too on the drop in emissions prices but less than their European peers due to thin trading.
The Cal 19 contract was seen trading earlier at Eur59.35/MWh but had a later bid-offer range of Eur59.50-Eur59.70/MWh, after it settled at Eur59.50/MWh on OMIP Monday.
"Prices are not falling much from yesterday's lows, last Thursday the same thing happened [when emissions fell below Eur19/mt] the lowest I saw Cal 19 was Eur59.30/MWh," a Spanish trader said.
Further in, the front-month contract was trading at Eur66.75/MWh down from Eur67/MWh at Monday's close.
