Trade war results in major price falls

Focus week 23: The USA has become involved in a trade war with several other countries and the nervous mood is affecting the markets.

Here and now

The downtrend in the Nordic energy market returned last week. The negative effects of the American trade wars are having a clear impact on the markets. Last week, the oil price fell by more than 10%, and the large fall immediately influenced the electricity prices. The Nordic Q3-19 contract closed at EUR 33.40/MWh on Monday, a fall of EUR 2.79/MWh for the week and the lowest price level experienced so far this year. Continually wet weather forecasts have also contributed to the development. The YR-20 contract now costs EUR 34.20/MWh, EUR 1.31/MWh less than last week.

Read Focus here.