German 2027 power contract falls as gas retreats on Middle East peace hopes
UNG•The German 2027 baseload power contract fell 2.3% to €157.1 per megawatt-hour as gas prices retreated on hopes for Middle East peace talks. German and French day-ahead power contracts also declined.
1. Year-ahead prices retreat
The German 2027 baseload contract fell 2.3% to €157.1 per megawatt-hour at 1015 GMT. Analysts at Mind Energy said the contract was retreating amid growing Middle East peace hopes. The equivalent French contract was untraded.
2. Spot markets and supply
German day-ahead power fell 14.2% to €275.5/MWh, while the French contract declined 10.3% to €240.5/MWh. European gas prices fell after moving above €100/MWh on Wednesday, although disruptions to Middle East LNG shipping were keeping supply tight ahead of winter. EU energy ministers were due to discuss energy security; gas storage was 75% full, compared with 83% a year earlier. German wind output and consumption were forecast to fall, while French wind output was expected to rise and nuclear availability increased to 80% of capacity.
