Euro Markets: EUAs follow morning stability with afternoon drop amid falling energy markets
After a relatively calm morning in which prices traded either side of Friday’s close, European carbon allowances weakened steadily during the afternoon, dropping by €1.50 by the close as the market absorbed a significant lessening of hostilities in the Middle East over the weekend that prompted energy markets to fall steeply, while the onset of the peak holiday season and continuing digestion of the EU ETS reform package appeared to take priority.
Read MoreEuro Markets: EUAs drop for second day as traders adopt risk-off ahead of tense geopolitical weekend
European carbon prices edged lower on Friday, extending Thursday’s €3.00 day-long decline as speculative traders took remaining profit after the market’s 10% jump early in the week, and participants reduced exposure ahead of a tense weekend in the Middle East.
Read MoreEuro Markets: EUAs shed 3% as bullish speculative response to reform package fails to garner wider support
European carbon prices gave up most of the previous session’s 4.1% leap on Thursday as the initial burst of speculative buying early in the week did not appear to trigger any wider demand, while traders fretted that EUA prices above €80.00 risked further complaints from EU member states and industry, particularly at a time when energy prices are surging.
Read MoreEuro Markets: EUAs advance for third day as speculative length builds ahead of reform package
European carbon surged after Tuesday morning’s auction as speculative length-building in anticipation of Friday’s EU ETS reform package presentation continued to drown out other market signals, including a further ratcheting up of the conflict in the Persian Gulf and rising power prices.
Read MoreEuro Markets: EUAs advance after REPowerEU sales programme ends, cutting auction supply by 20%
European carbon prices advanced on Monday after the EU completed an auction programme that raised €20 billion to speed its transition away from Russian fossil fuels and confirmed that auction volumes would be cut 20% through to the end of August.
Read MoreEuro Markets: EUAs remain rangebound as trade volume falls away ahead of policy developments
European carbon allowance prices moved in a narrow range on Friday morning, ending the session little-changed as traders chose to sit on their hands with just one week until the European Commission unveils its proposed ETS reform package, while energy markets drifted as the United States and Iran continued their dialogue despite a flare-up in military action during the week.
Read MoreEuro Markets: EUAs unchanged as market endures “calm before the storm” of EU reform package
EU carbon ended Thursday unchanged on the day, maintaining its largely rangebound trading as the market continued to focus on the upcoming ETS reform package, while energy markets reacted to the military escalation in the Middle East.
Read MoreEuro Markets: EUAs drop sharply after Commission reveals planned 2027 boost in supply
European carbon prices fell sharply on Wednesday as the European Commission announced some details of its reform package that suggested a boost in supply from as early as next year, after earlier having posted modest increases despite US President Donald Trump announcing that the ceasefire with Iran was over.
Read MoreEuro Markets: EUAs give up Monday’s gain amid steady day-long selling, as gas jumps on tanker attack
EU carbon allowances gave up all Monday’s price gains from Tuesday and more, as sellers came to the fore despite the approaching reduction in EU auction volumes as the REPowerEU programme is expected to end on Thursday, while energy markets rallied after an LNG tanker was attacked overnight.
Read MoreEuro Markets: EUAs race up to test technical resistance after strong buying wipes out early decline
European carbon prices broke out of their recent range and raced to a seven-day high as a burst of aggressive buying in the afternoon clawed back the morning’s losses and drove the market to a key technical resistance level.
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