The European carbon market closed lower on Tuesday, ending a six-day winning streak during which EUAs gained around €4. The price declined by a substantial 2.12%, tracking similar losses in the gas market. The TTF front-month contract dropped by 2.72% following news of a new gas supply deal with Azerbaijan.

According to Bloomberg, German state-owned SAFE signed a 10-year deal with Socar, allowing the company to buy the equivalent of about 1.5 billion cubic meters per year, or roughly 0.5% of the European Union’s gas consumption in 2024.

Both TTF and EUAs reversed direction this morning in reaction to information published late Tuesday by La Tribune. According to the outlet, Électricité de France (EDF) found indications of “stress corrosion” that could affect the pipes of reactor number two at the Civaux power plant, including sections that were repaired three years ago.

According to Le Monde, the French Authority for Nuclear Safety and Radiation Protection (ASN) confirmed “two indications” that highlighted the “possible presence of a defect in the material tested.” The reactor in question has been shut down since the night of April 4–5, as part of a standard maintenance outage.

A prolonged outage of the French nuclear fleet could increase demand for fossil fuel-based power generation in neighbouring countries that normally import electricity from France. This would place upward pressure on carbon prices. Similar announcements in the past have triggered significant gains in both carbon and gas prices.