EMM Week 30

With the exception of spot ARA coal prices, which were fairly stable throughout the week, energy commodities extended the losses of the previous week. Oil prices tumbled on the combination of easing tensions over Iran’s nuclear programme, an improvement in the supply picture in Nigeria, OPEC’s downward revision of projected global demand, remarks by the US Fed’s chairman on a gloomy outlook for the US economy, and rising US crude inventories. In a context of few changes in fundamentals, European spot and forward gas and carbon prices also lost ground as they followed crude oil downwards. Forward power prices tracked the decline of most primary energy markets, while prompt prices continued depressed on healthy power systems and low demand from the holiday period across North-Western Europe.