London — European power prices rose sharply Thursday on the near curve on the back of latest weather forecasts, with only Spain lagging behind as activity huddled in the back of the curve.
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French power prices for February delivery jumped Eur3 ($3.42) Thursday morning to Eur74.75/MWh on the OTC market, with the German peer also adding more than Eur2 to trade at Eur61.05/MWh.
"The coming weeks and for the front-month it's very bullish," a trader said, adding: "it's going to be colder." Latest weather forecast saw a sharp drop in temperatures, especially for week 6, the trader said.
Italian corresponding prices were seen last trading at Eur72.75/MWh up Eur2.25 from where EEX settled prices on Wednesday.
However, Spanish equivalent prices were seen up less than a Eur1 on the day at Eur61.50/MWh as most of the activity in the market was concentrated in the far curve. Market participants in Spain were seen more focused on the far curve, with most of the activity focused on the fourth-quarter of 2018 and Cal 20 contract.
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