EU carbon rises 8 pct on strong energy prices
EU Allowances for delivery in December closed at 4.47 euros, up 32 cents on Friday’s settlement after briefly touching a three-week high of 4.59 euros.
Around 24 million EUAs of all vintages changed hands, including government auction volume, compared with a daily average so far in 2013 of around 34 million EUAs.
“There is a bullish energy complex and an absence of sellers. In this low liquidity it doesn’t take much to move the market,” a trader said.
The 2014 baseload German power contract traded at 41.24 euros/MWh on EEX, up 52 cents on Friday’s close, on the back of
strong UK gas prices that remained over 100 pence per therm for the day-ahead contract.
UK gas prices have soared in recent days, pushed higher by colder weather, supply disruptions and low levels of stored gas.
Earlier in the session, the European Union sold 3.5875 million phase three spot EUAs at 4.10 euros on German bourse EEX.
The sale attracted bids for 6.4 million units, giving it a bid to offer ratio of just 1.79, the lowest subscription rate for an EU auction this year.
“There might have been a weak auction result today, but it doesn’t really reflect the fact people don’t really want to sell,” a second trader said.
He said Monday’s activity marked a continuation of bullish buying seen last week, as traders sought to close out short positions on the back of optimism that the European Commission’s plans to prop up prices would succeed.
“There is a carry through of the short covering from last week, and its being supported by the other energy contracts,” the second trader said.
Carbon prices rose after Hungary, Lithuania and Slovenia last week threw their weight behind a proposal to withhold 900 million allowances from the EU Emissions Trading Scheme over the next three years.
In the secondary market for U.N.-backed carbon credits, the Dec-13 CER contract gained 2 cents to 33 cents.
By Susanna Twidale – email@example.com
- Costa Rica opposition group says to scrap 2021 carbon neutrality target 08 Mar 14 00:11
- Latest Northeast U.S. carbon permit sales net $94 million 07 Mar 14 20:46
- Faster market reform could add 40 pct to Europe's CO2 price - Point Carbon 07 Mar 14 19:43
- EU carbon posts 2nd straight weekly drop despite record auction 07 Mar 14 18:50
- European carbon market still vulnerable to fraud: Dutch official 07 Mar 14 17:31
- EU diplomats back aviation carbon exemption, needs parliament OK 07 Mar 14 17:04
- UPDATE 1-Latest Northeast U.S. carbon permit sales net $94 million 07 Mar 14 16:42
- Italy, Romania and Spain start handing out 2013 free CO2 permits 07 Mar 14 16:36
- NZ carbon dips 1 pct this week on continuing oversupply 07 Mar 14 13:02
- China carbon prices firm ahead of deadline to report emissions data 07 Mar 14 11:22
- EPA chief: Energy rules won’t hobble business 06 Mar 14 23:10
- U.S. House advances bill curbing EPA power plant emission limits 06 Mar 14 21:53
- EU carbon rangebound ahead of supply cut 06 Mar 14 18:18
- Europe fears gas shortages if Russia cuts off Ukraine 06 Mar 14 17:44
- UPDATE 1-UK needs 100 bln pounds more to meet 2020 carbon targets 06 Mar 14 09:46
- UN says China, US climate cooperation raises hopes for global deal 06 Mar 14 09:41
- Polish utilities risk missing April EU ETS deadline: PGE emissions head 05 Mar 14 18:40
- EU carbon slips on weaker power, gas 05 Mar 14 17:13
- EU aims for carbon market reform ahead of 2030 target-setting 05 Mar 14 15:37
- Norway's Statkraft wins Flemish carbon credit tender: sources 05 Mar 14 13:01
- China to "declare war" on pollution, premier says 05 Mar 14 05:28
- EU reaches tentative deal on aviation emissions 05 Mar 14 05:23
- EU carbon rises 2 pct in volatile market 04 Mar 14 18:08
- German govt seeks CO2 cutting projects for 10 mln euro fund 04 Mar 14 15:10
- RWE's CO2 emissions fall 9 pct in 2013, hedging rate flat 04 Mar 14 13:15
Most read news
Most read News last 7 days: