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 – firstname.lastname@example.org
- Europe Power- Curve prices hold on to gains, shy away from more 25 Jul 14 17:37
- NZ carbon drifts further in pre-election lull 25 Jul 14 06:39
- EU carbon sinks 1.6 pct as industrial firms seen selling 24 Jul 14 17:45
- To cut carbon emissions, give communities rights to forest land - report 24 Jul 14 17:34
- China to roll out seven pilot markets for trading water rights 24 Jul 14 12:30
- For Californians, higher costs dampen support for clean energy 24 Jul 14 10:24
- Tianjin's carbon prices hit record low this week, over-allocation worries grow 24 Jul 14 06:19
- Vattenfall says tough conditions linger as underlying profit falls 23 Jul 14 17:47
- UPDATE 2: EU approves UK capacity market, renewable support scheme 23 Jul 14 15:43
- EPA chief in hot seat as lawmakers dissect carbon rule 23 Jul 14 13:09
- EU bosses outline energy savings goal to cut need for Russian gas 23 Jul 14 13:08
- France backs 30 percent energy efficiency goal -letter 22 Jul 14 21:20
- China warns against "blind" rush to build coal-to-gas plants 22 Jul 14 11:56
- UPDATE 1-Britain sticks with tough carbon target despite opposition 22 Jul 14 11:55
- EU carbon prices hold above 6 euros as analysts see more gains 21 Jul 14 17:41
- INTERVIEW-German local utilities want help with power plants 21 Jul 14 15:11
- Some Chinese offset projects to exit CDM if allowed 21 Jul 14 14:48
- Calif. carbon slips to $11.84/tonne as market shrugs off challenge 19 Jul 14 00:53
- EU carbon posts 5 pct weekly climb on utility buying 18 Jul 14 18:29
- S.Korean finmin says planned carbon market flawed, wants delay -paper 18 Jul 14 13:40
- NZ carbon falls further as emitters stay away 18 Jul 14 06:53
- European energy prices jump on Ukraine plane crash 17 Jul 14 20:27
- EU carbon price retreats below 6 euros after hitting 4-mth high 17 Jul 14 16:27
- FACTBOX- Carbon trading schemes around the world 17 Jul 14 10:35
- Global carbon market hope fades as Australia dumps CO2 trading 17 Jul 14 09:52
Most read news
Most read News last 7 days: