EU carbon prices held on to the previous session’s gains in lacklustre trade on Thursday to post a 5.6% weekly rise ahead of the four-day Easter break.
The Dec-15 EUA contract settled flat at €7.19 on ICE, some 38 cents higher than the previous Friday settlement following three consecutive daily increases to Wednesday.
The benchmark carbon contract slipped in early trade to as low as €7.10 before climbing after the 0900 GMT government auction to a week high of €7.27, extending Wednesday’s intra-day peak by one cent.
Around 10 million of changed hands on the front-year EUA, well below the previous session’s volume of almost 14 million.
Wednesday saw carbon’s biggest increase of the week, climbing 3% after traders were encouraged by higher-than-expected emissions data.
Market watchers were also encouraged this week by dealers reporting buy orders from smaller ETS installations – historically sellers – ahead of the April 30 annual compliance deadline.
There was no support from the energy complex, with key power, gas and coal contracts all easing lower as oil prices tumbled 4% as Iran nuclear talks showed no signs of a deal that could ease the country’s oil export sanctions.
The EU’s sale of 2.9 million spot carbon allowances cleared 2 cents below market at €7.14 with a healthy 2.4 bid-to-cover ratio and minimal volatility immediately afterwards.
The next government sale will be held next Tuesday Apr. 7 on EEX with an EU sale of 2.9 million.
By Ben Garside – firstname.lastname@example.org