Euro Markets: EUAs retreat amid general weakness as market takes pause after Monday volatility
European carbon prices slipped lower on Tuesday afternoon, making sporadic gains along with gas during the morning session, as regional energy markets recovered from Monday’s volatile and hectic session, with participants generally seeing the price action as a pause in the recent upward trend.
Read MoreEuro Markets: EUAs cling on to bulk of early gains after gas gives up massive 6.2% jump
European carbon prices rose to a more than two-month high on Monday, propelled by year-to-date highs in natural gas and power, growing geopolitical risks, and the prospect of sharply warmer temperatures across Europe that were expected to boost the call on thermal power, though the EUA contract’s early gains were trimmed amid an afternoon slump in gas and power markets.
Read MoreEU member states make scant progress in 2024 EUA handout
EU member states handed out fewer than 10 million EUAs for 2024 to industrial installations in the last two weeks, raising the total number of permits issued by just 1.5 percentage points and leaving the market with more than 21% of its annual allocation still to be distributed among emitters.
Read MoreEuro Markets: EUAs post 4% weekly gain, shrug off equity falls as technical support holds firm
European carbon prices posted a second weekly gain despite a moderate decline on Friday, as profit-taking and a weaker macro environment met technical buying above a key support level, while energy markets weakened slightly after a strong series of gains driven by emerging concerns over supply.
Read MoreEuro Markets: EUAs blow through more technical levels as short-covering drives price to four-week high
European carbon prices extended Wednesday’s gains as the market shrugged off early tests of a key technical level that had acted as resistance and has now become a support, and breached two more upside levels on their way to the highest intraday prices in nearly four weeks.
Read MoreUPDATE – EU raises Sep-Dec auction volumes 4% with no adjustment to REPowerEU sales
EU member states will auction 4% more EUAs between September and December this year compared to the same period in 2023, after the European Commission decided to make no changes to the number of permits it sells to fund the bloc’s transition away from Russian fossil energy.
Read MoreEuro Markets: EUAs post 2.6% monthly rise, settle above key resistance level amid firm energy
European carbon prices advanced to their highest in 12 trading sessions and posted a 2.6% monthly rise after settling above a key technical level that has held the market in check for eight weeks, amid general firmness across the energy complex and even as speculative traders increased their bearish bets to the most in more than four months.
Read MoreEuro Markets: EUAs post late rally to unwind early losses after support emerges at technical level
European carbon prices surged at the end of Tuesday’s session to erase nearly all of the day’s earlier losses as the market found robust support at a key technical level, with EUAs appearing still to take its cues from volatile natural gas markets, while UK carbon permits sank to a new 11-week low as speculators continued to unwind long positions.
Read MoreEuro Markets: EUAs head back towards upper end of recent trading range as buyers target technical levels
European carbon moved back near the top of last week’s €64-€69 trading range, coming within 30 cents of a key technical level as the recent robust selling interest was absent from the market on Monday, while natural gas rose amid growing evidence of further tropical storms that could impact US LNG exports.
Read MoreEuro Markets: EUAs post first 5-day gain in three weeks amid stronger energy while UKAs extend decline
European carbon recorded its first five-day gain in three weeks on Friday as prices moved higher in the wake of stronger natural gas and power markets though some traders were unconvinced at the strength of the rally, and UK Allowances posted a fourth weekly decline.
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