Euro Markets: EUAs snap winning streak as funds amass largest net long position in almost 3 years
European carbon allowance prices weakened on Wednesday, snapping their record-equalling nine-day winning streak as the market appeared unable to shake off growing bearish sentiment, while the weekly Commitment of Traders data showed investment funds last week amassed their largest net long position in nearly three years.
Read MoreEuro Markets: EUAs rally to extend winning streak, matching record after gas spikes on storage news
European carbon prices ended a volatile Tuesday slightly higher, matching the record of nine successive daily increases, after early weakness amid technical signals pointing to an overbought market was brushed aside following a jump in natural gas prices on updated German storage regulations, while UK Allowances steadied after bouncing back from Monday’s record low.
Read MoreCOMMENT: The UK ETS’ inbuilt advantage means reforms can take more time
This spring, UK Prime Minister Keir Starmer and European Commission president Ursula von der Leyen will meet to discuss UK-EU relations and future areas of cooperation as the new relationship between the two develops. Linking the UK and EU ETS could be on the agenda.
Read MoreEuro Markets: EUAs rise for 8th successive session despite growing doubts, as UKAs drop to new record low
European carbon prices advanced for a record-equalling eighth session in a row on Monday as prices enjoyed a boost from a spike in the gas market even as traders saw a growing chance of a sell-off, while UKAs set a new record low as confidence continued to ebb in the British government’s ability to quickly progress the market reform agenda, and the prospects for linking the EU and UK markets remain low.
Read MoreEuro Markets: EUAs top significant level as speculative buyers continue to bolster prices, as UKAs weaken again
European prices forged higher for a seventh consecutive day on Friday, breaching an important psychological level during the session before posting a 5.9% weekly gain as buyers kept control of the price action, while energy markets followed the strength in EUAs across the board but UKAs weakened again to their least since the market’s record low a year ago.
Read MoreEuro Markets: EUAs post sixth daily gain in a row even as energy weakens, while UKAs near record low
European carbon allowances were modestly firmer at the end of trading on Thursday, after an attempt to breach Wednesday’s one-year high was beaten back to leave prices in a relatively narrow channel, while UKAs extended their fall to the least in one year, leaving the market close to its record low.
Read MoreEuro Markets: Benchmark EUAs surge to new one-year high as funds amass biggest long position since 2021
Front-December European carbon prices rose to their highest in just over a year on Wednesday as an opening spike amid reports of Russian attacks on Ukrainian energy infrastructure was sustained by healthy buying, after Commitment of Traders data that showed investment funds now hold their largest total long position in EUAs in more than three years.
Read MoreEuro Markets: EUAs cling to rising trend as buyers keep selling pressure at bay ahead of auction gap
European carbon prices ended Tuesday little changed, but kept their rising trend going for a fourth day after trading in a relatively tight channel between key technical levels in sync with natural gas, as buyers and sellers struggled for the upper hand.
Read MoreANALYSIS: Shift in EUA open interest reflects gradual transition to new compliance calendar
The shift in the EU ETS compliance calendar has led to several changes in EUA trading patterns, as open interest has started to shift away from the historical first quarter buildup and into the summer months, but there remains significant activity in contracts that were formerly important for obligated entities.
Read MoreEuro Markets: EUAs, European energy markets climb on one-two punch of geopolitical headlines
European carbon and energy prices jumped Monday morning on weekend reports that Ukrainian forces had targeted facilities on the Turkstream gas pipeline, the only remaining route for gas being shipped from Russia to Europe, and later on news that 10 EU states were calling for stiffer sanctions against Russian gas and LNG imports.
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