Euro Markets: EUAs give up this week’s gains as gas plummets, COT shows little change
European carbon allowance prices retreated on Wednesday as gas prices weakened after four days of gains, with the benchmark EUA contract giving up all this week’s steep rally while an inconclusive set of Commitment of Traders data saw some question the conviction of speculative traders in the bearish trend.
Read MoreEuro Markets: EUAs add 4.4%, record 25% climb in two weeks as rising gas, short-covering drive rally
European carbon allowance prices erased Monday’s losses and resumed their upward march, crowning a 25% rally in the last two weeks amid a continuation of short covering, as energy markets jumped sharply on Middle East tensions and interruptions in gas supply in both the US Gulf and North Sea.
Read MoreEuro Markets: EUAs fluctuate after early steep drop as energy markets gyrate on geopolitical gusts
European carbon prices fell sharply in line with energy at the open on Monday, before fluctuating across the session as tensions in the Middle East appeared to lessen after Iran’s weekend drone strikes against Israel were largely defeated, with participants reporting a slight relaxation in market risk.
Read MoreEuro Markets: EUAs reach 3-month high, post 18% weekly gain as short covering continues amid energy strength
European carbon prices jumped to their highest in three months late on Friday, extending Thursday’s 8% gain and posting an 18% weekly increase, as short-covering continued to drive the market, while also helping boost energy prices to their strongest in more than two months.
Read MoreEuro Markets: EUAs post biggest one-day gain in 19 months as early gas spike triggers short-covering
European carbon prices jumped by the most in 19 months on Thursday, erasing Wednesday’s losses and setting a new three-month high, after an early gas-driven rally was amplified by a surge of short-covering as stop levels were hit, raising the prospect of further gains with short-positioned traders expected to come under greater pressure.
Read MoreEuro Markets: EUAs give up week’s gains despite strong auction as COT shows funds rebuilding shorts
European carbon prices fell back after a strong opening, giving up most of this week’s gains as traders absorbed data showing that speculative investors had continued building bearish bets last week, as they shrugged off the biggest premium in a daily auction for two weeks, while energy markets snapped a four-day winning streak.
Read MoreEuro Markets: Carbon shrugs off afternoon weakness in energy to post fourth consecutive gain
European carbon prices rose for a fourth day on Tuesday as a robust reaction to a slightly below-average auction drove the market to a 10-day high, while an afternoon slide in natural gas prices was largely ignored, leading some to wonder whether speculative investors might be further reducing their short positions.
Read MoreEuro Markets: EUAs post biggest daily gain in two weeks amid surge in power, gas prices
European carbon allowance prices rose on Monday, shrugging off a sharp fall at the opening to move to their highest in nine days, as the market once again tracked rising power and natural gas prices, while UKAs rose more modestly, widening their spread to EUAs to the most in two months.
Read MoreEuro Markets: Late surge of buying sets 5-day high, trims EUAs’ weekly loss after “sleepy” start
European carbon allowances rose to their highest levels of the week at the end of Friday trading, trimming the weekly loss to 2.2% as participants cleared their positions ahead of the weekend, after a “sleepy” morning saw the market move in a very narrow range, while energy prices also posted sharp gains late in the day.
Read MoreEuro Markets: EUAs snap three-day losing streak as firmer gas outweighs larger-than-expected 2023 emissions drop
European carbon prices showed little reaction on Thursday to the publication last night of verified emissions data for 2023, despite a larger-than-predicted drop, with the market garnering support from firmer TTF gas, while a modest reduction in investment funds’ short positioning failed to trigger a clear price move.
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