Milder weather forecasts result in significant price fall

Focus week 7: The winter looks set to be put on hold, at least for the next few weeks, and the milder and wetter forecasts resulted in falling forward prices last week.

Here and now

After several contracts in the Nordic energy market reached their highest levels in more than a year earlier this February, the forward market experienced falling prices last week. The forecasts currently indicate a clear change in the weather towards the end of this week, with temperatures and precipitation volumes increasing to above normal for the time of year. This resulted in a clear downwards adjustment in the energy market, which had priced in a cold end to the month. The Q2-21 and YR-22 contracts fell to EUR 28.06/MWh and EUR 26.90/MWh respectively, which is EUR 5.18/MWh and EUR 0.55/MWh less than one week ago.

Read Focus here.