Euro Markets: EUAs set fresh four-month high before weakening to post 3% weekly gain amid energy markets surge
European carbon prices jumped to a fresh four-month high on Friday morning after overnight attacks by Israel on Iranian military and nuclear targets sent energy markets spiralling higher at the opening, but EU allowances gave back more than half their gains in the afternoon while the energy complex stabilised and traders took profit even as EUAs posted a 3% weekly gain.
Read MoreEU-UK agreement to start linking talks has shifted UKA price outlook –analyst
The recent agreement between the UK and EU to start negotiations over linking their respective emissions trading systems “has fundamentally shifted the outlook” for UK Allowances, according to an analyst who has raised their forecasts for British prices for the second half of this year onwards.
Read MoreEuro Markets: EUAs breach key level to reach four-month high amid energy rally as French nuclear units face tests
EUA prices climbed to their highest in nearly four months on Thursday, recovering from early profit-taking amongst speculative participants after news emerged of further investigations at French nuclear facilities, leading to renewed buying which also led to some hedging activity in anticipation of the June options contract expiry.
Read MoreUK ETS verified emissions drop 11.5% in 2024 as power, steel record falls
UK ETS emissions fell by more than one-tenth in 2024 as a drop in power sector emissions led the way lower for a second year, while the iron and steel sector led a decline in industrial greenhouse gases, and aviation reported a marginal gain.
Read MoreEuro Markets: EUA rally continues to be held in check by key level acting like “bouncer at a nightclub”
European carbon allowance prices headed back towards a key level on Wednesday morning, boosted by strong gains in natural gas and power markets after news of corrosion at a French nuclear reactor sparked a rally across energy markets, and weekly position data showed speculative participants had upped their bullish bets last week.
Read MoreEuro Markets: EUAs drop by most in 3 weeks as falling gas prices end carbon’s 6-day winning streak
EU carbon allowance prices gave up Monday’s gains and recorded their first loss in six days, returning to the middle of their well-established range as activity picked up on Tuesday after a public holiday on northern Europe, while gas prices continued to drift for a third day as traders eyed news of additional supply deals.
Read MoreEuro Markets: EUAs cut loose from TTF gas link and rise to three-week high as macro, demand optimism grow
European carbon prices advanced for a sixth day, disconnecting from a weaker natural gas market as a holiday across many parts of Europe robbed the EUA market of liquidity and handed the initiative to the bulls, with traders eyeing US-China trade talks this week, as well as the prospect of lower renewables output and increased cooling demand.
Read MoreBRIEFING: Key details of ETS link-up with EU still up for negotiation, UK says
The end goal of talks on linking the EU and UK emissions trading schemes (ETSs) is to ensure “fungibility” between allowances on the two sides, the UK ETS Authority said this week, without giving many further details on upcoming talks.
Read MoreEuro Markets: EUAs end almost unchanged as carbon tracks swings in gas, while UKAs hold above key level
EU carbon prices gave up a mid-morning rally to end Wednesday fractionally higher, after early strength driven by firmer natural gas and equities as well as the lack of a daily auction, with participants eyeing a recent upside resistance zone around €74.00, wile UKAs continued to hold on just above a key psychological level.
Read MoreEuro Markets: EUAs lead gas, power to second day of gains as UKAs unmoved by government briefing
EU carbon prices advanced for a second session on Tuesday, shrugging off a lack of early support from natural gas and responding to technical and some fundamental signals to close at the day’s high, even as traders continued to bemoan the lack of intrinsic drivers in the EU ETS, while UKAs were unmoved after the market regulator offered little news on the process to link the UK and EU markets.
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