REPowerEU revenues from EUA auctions falling behind target amid EUA price slump
REPowerEU revenue has fallen more than €300 million behind the EU’s target after the first a year of sales under the initiative, raising the prospect that even more EUAs will need to be sold into the market to raise the €20 billion in funding that has been promised from the bloc’s carbon market to pay for the switch away from Russian energy supplies.
Read MoreEuro Markets: EUAs end little changed after rally fails to find support from weaker gas
EU carbon prices ended Wednesday little changed after a fairly volatile session characterised by strong volume, as an EUA rally after the daily auction appeared to be a reaction to another increase in speculators’ net short positions, which was not matched by a recovery in natural gas, casting further doubt on the recent correlation between the two markets.
Read MoreEU ETS could amass 1.7 bln surplus allowances by 2030 unless hydrogen production rises –analyst
The EU ETS could end its current phase in 2030 with a total surplus of 1.7 billion allowances, including 900 million permits in various reserves, but progress in reaching targets for green hydrogen could alter this outlook, according to a new study.
Read MoreEuro Markets: EUAs burst into life to post biggest daily gain in six weeks on options, speculative trade
European carbon allowances exploded higher on Tuesday afternoon, dragging energy markets with them after a largely unchanged morning, as heavy options trading and hedging appeared to drive speculative buying and trigger stop-losses among some short positions to give EUAs their biggest daily gain in six weeks.
Read MoreEuro Markets: EUAs join energy in sharp early relief rally before afternoon sell-off trims gains
EU carbon allowances started the week brightly as Europe’s energy and equity markets rallied in relief at the outcome of the first round of France’s parliamentary elections, before tailing off over the rest of the day as the recent daily pattern appeared to reassert itself, while energy markets gave up all their early gains.
Read MoreEuro Markets: EUAs post 9% loss in June after late rally follows another two-month low
European carbon prices continued their week-long slide on Friday morning to set yet another two-month low amid declining liquidity, before embarking on a sharp rally that was variously attributed to options hedging or to end-of-quarter profit taking by shorts, leaving the market with a monthly loss of 9%.
Read MoreEuro Markets: EUAs fall to new two-month low amid afternoon pressure, while UKAs hold steady
European carbon allowances declined after hitting another two-month low as the market traded in a comparatively narrow range on Thursday – as indeed most of the energy complex did – with activity appearing to slow amid the end of the quarter and the start of the holiday season, while UK Allowances gave up early gains but still posted a marginal increase.
Read MoreEuro Markets: EUAs tumble amid further aggressive selling as gas prices plunge after options expiry
After making early gains in line with natural gas, European carbon prices broke lower and fell to a new two-month low amid heavy selling, as weekly position data showed investment funds had reduced length for a fourth consecutive week and UK Allowance prices dropped away after the auction cleared at a discount for the first time in two months.
Read MoreEuro Markets: EUAs recover after testing technical low as UKAs rise the most in three weeks
European carbon prices snapped a three-day losing streak on Tuesday, shrugging off an early decline to an eight-week low in early trading to rally above a technical resistance level in the afternoon, while natural gas moved higher even as TTF prices remain within their recent range and UKAs posted their largest gain in more than three weeks.
Read MoreEuro Markets: EUAs drop a third day as gas continues sideways trading, while UKAs make late rally
European carbon prices fell for a third day, reaching their lowest in more than seven weeks on Monday, as natural gas prices were little changed despite a worsening outlook for demand amid rising temperatures in northern Europe and a persistently negative clean dark spread.
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