Euro Markets: EUAs rise 1.5% amid options expiry positioning before easing to post marginal advance
EUAs rose as much as 1.5% before falling back towards the week’s lows on Wednesday as traders positioned themselves for the expiry of June options in the early afternoon and after weekly Commitment of Traders data showed speculative traders had increased their bullish bets last week by the most in nine months and ahead of the afternoon expiry of June options contracts.
Read MoreEuro Markets: EUAs trim losses after steady options-related selling, as UKAs fall 7.1% in 2 days
European carbon dropped by as much as 1.6% through to mid-afternoon on Tuesday before clawing back around a third of the decline as market participants eyed Wednesday’s expiry of the June options contract, while UK allowance prices fell heavily for a second session and have lost 7.1% in two days, after having come within nearly €10 of their EU counterpart late last week.
Read MoreEU adjusts REPowerEU sales volumes after one component hits revenue target
EU Allowance auction volumes are to be adjusted downwards after the first of two fundraising mechanisms to help the European Union speed its transition away from Russian fossil fuels reached its revenue target on Monday, the European Commission said on Monday.
Read MoreEuro Markets: EUAs jump 1.2% amid options hedging while UKAs plunge as UK-EU summit postponed
European carbon allowance prices jumped by more than €1 late in the session as aggressive options hedging drove prices to their highest in more than four months, after the strongest auction result in two weeks signalled the completion of the first of two fund-raising efforts to smooth the EU’s transition away from Russian fossil fuels, while UKAs slumped on news that the long-anticipated EU-UK summit to discuss market linking would be postponed after the resignation of the British prime minister.
Read MoreEuro Markets: EUAs flat as energy markets struggle to digest potential Strait of Hormuz reopening
EUAs ended the day flat as energy markets seesawed amid a tentative reopening of the Strait of Hormuz, with participants pointing to rising European equities as offering an increasingly bullish signal.
Read MoreEuro Markets: EUAs rally from early 1.1% drop with a boost from UKA jump as EU-UK summit confirmed
European carbon allowance prices fell away over the course of Tuesday morning before rallying strongly in the afternoon with UKAs, after Britain and EU confirmed a Jul. 22 date for a summit that’s expected to include an agreement to link carbon markets, while energy markets continued to weaken amid expectations of steadily improving supply from the Middle East in the coming weeks.
Read MoreEuro Markets: EUAs settle over €80 for first time in two weeks as peace deal, benchmarks boost confidence
European carbon prices surged early on Monday as markets reacted to the announcement that a peace memorandum between Iran and the United States will be signed later this week, and edged up further in the afternoon to cross the psychological €80 level after EU representatives voted to approve proposed benchmarks adjustments for free allocation.
Read MoreEuro Markets: EUAs post 4.6% weekly loss despite Friday consolidation amid macro weakness
EU carbon prices posted their first weekly loss since the start of May, even as the market consolidated on Friday and only posted a modest 0.2% decline amid wider weakness across many asset classes, after early dip-buying had brought prices back from a two-week low.
Read MoreEuro Markets: EUAs fall as much as €2 amid continued selling before afternoon stabilisation
EU carbon allowances fell by as much as €2 by early on Thursday afternoon as traders continued to liquidate long positions that were initiated last week, before prices then stabilised over the balance of the session, while news reports concerning 400 million permits set to be allocated to fund a new Industrial Decarbonisation Bank also appeared to add to the bearish mood.
Read MoreEuro Markets: EUAs swing from psychological upside target back down to technical support as funds build length
EU carbon prices briefly topped a key psychological level after the weekly Commitment of Traders data showed a strong build in bullish bets by speculative participants, before renewed selling took the market back down to familiar territory near an important technical mark, leaving the price finely balanced as another supply adjustment approaches.
Read More