NorWatt Energy positioned itself too early in June

- June is a month where snowmelt usually causes the reservoirs to fill up quickly and the spot price in periods to be pushed down. But this winter there was little snow, and the spot prices has generally been high while the water level in the hydro dams in Norway and Sweden are low. Towards the end of the month the spot price was at the same level as power prices traded for next winter. In June the rising gas and coal prices made the German power prices for the coming winter substantially higher than the Scandinavian power prices for the same period. The strained hydrological situation makes it unnatural that the German price is above the Nordic. But it is uncertain when such an adaptation will take place, writes NorWatt Energy in their June comment.