German power for delivery next year advanced to a two-month high today after breaking through technical resistance.
Electricity for delivery in 2014 in Germany, Europe’s biggest energy market, gained as much 1.5 percent to 38.40 euros a megawatt-hour, the highest since July 3, according to broker data compiled by Bloomberg. The contract traded at 38.25 euros at 1:31 p.m. Berlin time. The resistance level was at 36.90 euros, according to Thomas Randel, a trader at EnBW Energie Baden-Wuerttemberg AG. (EBK)
“German power is rising after breaking a trend,” Karlsruhe, Germany, based Randel said in an e-mail today. “The contract has now room to rise to 40 euros.”
A slump in electricity demand, and increasing output from solar and wind, helped push the 2014 German power contract down to a record 36.05 euros a megawatt-hour Aug. 6. The contract, a European benchmark, lost 22 percent over the past 12 months.
German power traded through brokers slumped 31 percent in August from a year earlier, according to a report today by the London Energy Brokers Association. German power demand declined 1.3 percent in the first half of this year, energy lobby group BDEW said last month.
French electricity for 2014 climbed 0.6 percent to 42.50 euros a megawatt-hour, the most since July 3, according to broker data on Bloomberg. The contract dropped to a record 41.35 euros a megawatt-hour June 11.
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