Euro Markets: EUAs decline 1% despite late gas price spike after COT data shows funds cutting shorts further
EU carbon allowance prices gave up early gains and ended the day 1% lower after weekly positioning data showed investment funds further reducing their bearish bets and a rise in hedging related to coal-fired power generation, before rallying briefly in the afternoon after erroneous reports of an outage at a major US LNG plant triggered a momentary spike in natural gas prices.
Read MoreEuro Markets: EUAs make early gains, flatline in afternoon as gas stabilises
European carbon prices ended Tuesday moderately firmer as gains in the morning were followed by sideways trading throughout the afternoon, with EUAs benefitting from an early climb in natural gas after a number of interruptions to North Sea production were announced.
Read MoreEuro Markets: EUAs post 1.9% weekly drop as sellers remain in charge, while gas falls 7.5%
European carbon allowance prices fell for a fourth day in a row on Friday, posting a weekly loss of 1.9%, as selling interest continued to out-muscle buyers even as the market shadowed movements in natural gas, which posted a 7.5% weekly decline.
Read MoreEuro Markets: EUAs drift lower amid selling pressure as weaker gas market provides little support
European carbon weakened for much of Thursday’s session as sellers appeared to hold the balance of power, though the benchmark contract moved in a relatively narrow trading range with much of the recent gas-fuelled volatility absent.
Read MoreEuro Markets: EUAs and TTF gas slide heavily as position data shows funds cutting carbon short, boosting gas length
European carbon allowance prices fell back after early strength on Wednesday was unwound when the weekly position data showed investment funds significantly cut their bearish bets, suggesting that the risk of a short squeeze has receded, while boosting their long positions in natural gas.
Read MoreEuro Markets: EUAs snap four-day winning streak after reaching new 12-day high as sellers return
European carbon prices snapped a four-day rally after rising to their highest in 12 weeks in the morning amid an increase in buying interest with coal-fired power continuing to make inroads into gas’ share of the EU generation mix, before dropping back to record a loss as the failure to breach a key psychological level encouraged sellers to re-enter the market later in the day.
Read MoreEuro Markets: EUAs settle at 11-week high amid rising demand from coal generation
European carbon allowances advanced to reach their highest settlement in 11 weeks on Monday as demand from coal-fired generation was said to be picking up amid a shift in relative margins from gas to the fuel for some delivery periods, while energy prices also firmed as gas traders continued to fret over storage levels that are now below 2023 levels.
Read MoreEuro Markets: EUAs float higher as selling pressure dwindles, UKAs rise for first week since June
EUAs posted their third weekly gain in the last month, as modest buying activity was enough to counter active selling pressure, while trading volume shrank as participants headed into the peak summer weekend and UKAs snapped a run of six weekly losses.
Read MoreEuro Markets: EUAs reverse early losses as stronger energy markets overcome weight of selling
European carbon prices recovered early losses on Thursday, enjoying the slipstream from rising energy markets later in the day, as trading activity picked up again after Wednesday’s lull despite a public holiday across much of the region.
Read MoreEuro Markets: EUAs post modest gain in light trade as funds cut shorts, while gas market edges lower
European carbon prices shrugged off weakness in natural gas to end Wednesday moderately higher, targeting a key resistance level amid a re-emergence of buying interest after Tuesday’s decline and as weekly position data showed investment funds had cut their bearish bets to the lowest in two months.
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