New major price fall in forward market

Focus week 8: For the second week in a row, mild and wet weather forecasts caused significant falls in the Nordic forward prices. The markets do not believe that the cold weather is likely to make a proper reappearance this winter.

Here and now

The ice-cold winter weather is now a thing of the past in the Nordic region. The temperatures have climbed well above normal, and the weather forecasts indicate that the mild weather will continue at least well into March. The Nordic energy market does not appear to have much faith in the winter weather making a proper return this season, and the forward prices therefore plummeted for the second week in a row, especially in the short-term contracts in the market. The Q2-21 contract fell by a further EUR 4.81/MWh to EUR 23.25/MWh, while the YR-22 contract is now down to EUR 25.20/MWh, EUR 1.70/MWh lower than a week ago.

Read Focus here.