Euro Markets: EUAs trim weekly loss amid sanctions-fuelled afternoon rally
European carbon prices surged strongly on Friday afternoon, wiping out early declines and trimming the weekly loss to just 1.4%, as futures neared recent highs amid a surge in crude oil and most energy markets after news of fresh US sanctions on Russian energy sales.
Read MoreEuro Markets: EUAs climb strongly after technical bounce as gas rally adds support
EU carbon prices rose strongly in the second half of the day, as technical buying triggered a rally after prices failed to conclusively breach a key support level, also helped by natural gas prices clawing back much of a 3.7% morning loss.
Read MoreEuro Markets: EUAs slide for third day on long squeeze as gas weakens amid speculative selling
EU carbon allowances followed natural gas prices lower on Wednesday, dropping to trade close to technical support levels despite weekly position data showing that investment funds ramped up their buying last week and now hold the largest net long position in 22 months.
Read MoreUPDATE – Euro Markets: EUAs trim losses amid late gas-driven rally after weak first auction
European carbon prices declined for a second day as the first auction of the year cleared at a sizeable discount to the secondary market and saw modest demand, though a late gas-fuelled rally narrowed the day’s losses.
Read MoreEuro Markets: Five-day EUA rally ends as gas weakens, auction resumption looms
European carbon prices fell on Monday, ending a five-day run of gains, as the market tracked weakness in natural gas and reflected participants’ moderated price expectations ahead of the resumption of EUA auction supply from Tuesday.
Read MoreEuro Markets: EUAs post further gains as resumption of auctions looms over market
European carbon allowances extended their gains to another seven-month high on Friday as buyers continued to build positions despite the prospect of auctions resuming nextweek, as natural gas prices consolidated just above €50/MWh for a second day.
Read MoreEuro Markets: EUAs hit 10-month high moderate trade as gas surges on North Sea outage
European carbon allowance prices jumped 3% on Thursday and touched a 10-month high as the market began to resume normal activity after the holiday break, with front-December EUAs picking up their correlation with TTF natural gas prices that rose steeply on the back of outages in the North Sea.
Read MoreEuro Markets: EUAs ease lower on thin volume as market settles in for holiday period
European carbon prices traded lower in the final, holiday-shortened session ahead of the break, stretching the correlation with natural gas with some other markets already closed.
Read MoreEuro Markets: EUAs build on recent strength amid bullish gas, auction pause
European carbon prices gathered strength on Monday on low volume, rising over 2.5% as they tracked strength in TTF natural gas, with the few active buyers encountering little resistance amid the quiet market.
Read MoreEuro Markets: EUAs end marginally higher despite healthy TTF gain, as activity starts to wind down
Volatility and trading volume in European carbon allowances diminished on Friday, while prices were marginally higher at the close despite a healthy gain in TTF gas, leaving EUAs with a 5.9% weekly gain as market participants started to clear their desks ahead of the holiday break.
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