Power prices have already been at record ever highs for a while now. Gas prices yesterday reached their highest levels since the “Beast from the East” the famous cold spell in March 2018. Gas prices since mid June have been carrying serious momentum, barely stopping to catch breath, and you can understand why with the current situation.
Depleted storage levels, no LNG cargoes booked in for the next two weeks, no increased capacity from Russia and East Europe, a heavily strained Norwegian network and demand continuing to recover has created these conditions.
This morning we are now seeing Power prices jump upwards with real pace, to the point I would not be surprised to see prices pulled by supplies. The main Driver seems to be Carbon prices which broke way past its record highs of 56.7 EUR, currently trading over 58 EUR, a sizeable gain in just a very short space of time.