Notable downward adjustment in forward market

Focus week 11: Even though the war in Ukraine is continuing unabated, there were price falls across the forward market last week. Spot prices, on the other hand, have climbed sharply.

Here and now

Following two weeks of soaring electricity prices in the Nordic region, the market clearly felt it was time for a downward adjustment last week, and prices fell for both the short-term and long-term contracts in the market. The Q2-22 contract closed at EUR 89.50/MWh on Monday, a fall of 27% compared to the previous week, while the 2023 contract has fallen by 8.5% to EUR 48.50/MWh. The gas market continues to determine developments and, for now, gas deliveries from Russia to Europe are continuing, despite significant sanctions and Russian threats of shutting off supplies. Nevertheless, the uncertainty remains high, and daily fluctuations are substantial.

Read Focus here.