June 29, 2018 / 1:15 PM / 22 days ago

EUROPE POWER-Curve eyes May records, driven by firmer oil, carbon

FRANKFURT, June 29 (Reuters) - European wholesale electricity contracts for the coming years were near record levels on Friday, triggered by gains in related carbon emissions rights prices and oil, often described as the energy sector’s “lead currency”.

* Traders said momentum has been building since mid-week, revisiting last month’s trend when related fuel rallies pushed next year delivery to contract highs.

* Germany’s Cal’19 baseload was 0.9 percent up at 43.2 euros ($50.32) a megawatt hour (MWh), just 10 cents shy of its May 24 all-time high.

* The equivalent French Cal’19 position gained 0.6 percent to 48.1 euros, 15 cents below its May 24 record.

* European carbon permit prices for December 2018 expiry were up 0.7 percent at 15.11 euros a tonne. They have benefited from European reform efforts this year to bolster prices and create incentives for carbon-saving measures, as utilities try and avoid mandatory purchases of certificates.

* Oil climbed as U.S. sanctions against Iran threatened to remove crude supply from world markets at a time of rising demand.

* The price of European delivery AP12 coal for imports in 2019 did not trade, having closed at $88.20 a tonne.

* It has risen 4.6 percent over the past week, driven by Chinese demand in the global market which took the European contract above $90 earlier this month.

* Spot power prices for early next week gained sharply on a forecast drop in German wind power generation.

* German OTC baseload for Monday jumped 10.3 percent over the price paid for Friday to 49.1 euros/MWh, while the equivalent French contract was 12.6 percent higher at 52.35 euros.

* On the supply side, Thomson Reuters data showed German wind power output was likely to fall to 6.1 gigawatts (GW) on Monday and to 3 GW on Tuesday from 6.6 GW on Friday.

* Thermal plant operators in Germany and Austria are set to cut capacity availability by 3.5 percent in the seven days to July 6, data from the EEX bourse showed.

* Power demand in Germany is forecast to drop by 1 GW to 60 GW on Monday, while French demand should rise by 1 GW to 48 GW.

* In eastern Europe, Czech Monday baseload and year-ahead power contracts did not trade. In the previous session, day-ahead contracts closed at 46.75 and year-ahead at 44.45 euros. ($1 = 0.8584 euros) (Reporting by Vera Eckert; Editing by Jan Harvey)

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