Gas prices fall again following rumors of a deal with Azerbaijan

Last week, gas prices fell following rumors of a deal with Azerbaijan for gas supply via Ukraine. A similar event occurred a few weeks ago, leading to a substantial price drop. Multiple reports indicated that Slovakian gas buyers, among others, had reached an agreement to replace Russian volumes, which will cease at the end of the year, with Azerbaijani gas. The December contract settled nearly 5 euros lower at 39.2 €/MWh by the end of the week.
The average Dutch spot power price was 110.3 €/MWh last week. From Monday onwards the residual loads increased as wind died down, which led to conventional power plants being marginal for the majority of the week. Friday was a public holiday in both Germany and France, leading to much lower demand in these countries. Consequently, the Dutch baseload price was significantly higher than in neighboring countries as the markets decoupled.
With the drop in gas prices, power prices for the coming months also declined. December fell by nearly 6 euros to 91 €/MWh, and January decreased by almost 8 euros, closing at 100.1 €/MWh. The December CO2 contract dropped by 3 euros, settling at 63.9 €/EUA.

For next year, the calendar gas price fell by nearly 4 euros to 38.2 €/MWh. CO2 closed 3 euros lower at 65.9 €/EUA. The Dutch baseload contract for 2025 delivery dropped by almost 7 euros to 83.1 €/MWh. The clean spark spread improved by around 2 euros to approximately -13.5 €/MWh, while the clean dark spread worsened to -16 €/MWh.

Weekly changes