Euro Markets: EUAs reach four-month high before giving up €4 amid afternoon profit taking
European carbon allowance prices climbed to their highest in four months on Friday morning as determined buying took prices above two key technical levels, before sliding by more than €4 in the afternoon and giving up all their gains since Wednesday amid profit-taking ahead of the weekend and next week’s full auction programme.
Read MoreEUA cancellations associated with coal closures set to cut supply by 160 Mt by 2030 -analyst
Retirement of coal- and lignite-fired power plants by EU member states could lead to as many as 160 million EUAs being voluntarily cancelled by 2030, with even more set to be deleted after that date, forcing prices higher as supply is removed from the market, according to an analyst.
Read MoreEuro Markets: EUAs climb above technical resistance and eye a further mark in holiday-thinned market
European carbon prices rose steadily throughout the day on Thursday, breaching a technical level that has acted as a brake on the rally in recent days, with bullish traders seemingly able to push prices higher in a very illiquid market as many European participants enjoyed a public holiday.
Read MoreEuro Markets: EUAs shrug off weak gas to rally a second day on auction pause and another cut in fund shorts
European carbon prices rose steadily on Wednesday, ignoring weakness in gas as traders bought in anticipation of a pause in the auction programme for the next two days, while the weekly positions data showed investment funds adding to their bullish bets for a second week, while trimming their short positions moderately.
Read MoreEuro Markets: EUAs stabilise after sharp morning drop as traders anticipate weekly position data
European carbon prices dropped steeply on Tuesday morning amid robust selling as traders took profit after EUAs failed to breach the psychologically important €75.00 level for a third time, before stabilising for the rest of the session as participants began to anticipate Wednesday’s Commitment of Traders data.
Read MoreEuro Markets: EUAs post 7.6% weekly gain despite abrupt about-turn and daily loss as profit-taking emerges
European carbon allowances posted a weekly gain of 7.6% despite a volatile session on Friday, in which prices reached a 13-day high but unwound all their gains as the short squeeze of the last three sessions gave way to profit-taking after Thursday’s 6.9% jump.
Read MoreEuropean coal output, imports slump amid drop in energy demand and shift to renewables
European hard coal output dropped by 9% in 2023, while lignite production plunged 24% year-on-year as demand for fossil-fired energy tumbled, according to an annual report from Euracoal, the bloc’s coal association.
Read MorePOLL: MSR to remove fewest permits to date in 2024-25 amid marginal decrease in EU ETS surplus -analysts
The annual reduction in EU carbon allowances for 2024-25 through the Market Stability Reserve will be the smallest yet, reflecting a slight decrease in the market’s overall supply in 2023, according to a poll of analysts.
Read MoreEuro Markets: EUAs post second-biggest daily increase of the year as buyers return in force
European carbon prices jumped sharply on Thursday to post their second-biggest one-day gain of the year as speculative traders were said to be further reducing their short positions after Wednesday’s Commitment of Traders data showed investment funds had trimmed their overall bearish bets for a third week in a row.
Read MoreEuro Markets: EUAs drop in quiet trade as COT data shows third straight cut in funds’ net short
European carbon allowance prices fell in light trading on Wednesday amid a European bank holiday, while weekly Commitment of Traders data that showed a third successive drop in investment funds’ net short positioning triggered some speculation that prices may have reached a short-term floor.
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