Euro Markets: Carbon sets another year-to-date low as front-month gas plunges 12% in two days
EU carbon prices resumed their downward momentum on Thursday, falling to a new year-to-date low amid steady selling as natural gas prices continued to fall, as traders began to consider where the market might find a floor, and to try to guess how large the speculative liquidations have been, that may be reflected in next week’s positioning data.
Read MoreEuro Markets: Carbon tracks gas gyrations, ends modestly firmer as funds cut length for third week
European carbon prices enjoyed a healthy boost from a strengthening gas market on Wednesday morning, but gave up almost all their gains in a choppy afternoon as natural gas also unwound steep increases to close 4.5% down on the day, after the European Commission announced its intention to soften gas storage mandate rules.
Read MoreEuro Markets: EUAs fall by most in 11 months to new year-to-date low amid concern over US tariffs, Ukraine
European carbon fell the most in a single session since October to a new year-to-date low on Tuesday amid a steep sell-off in most markets after the US went ahead with plans to impose import tariffs on selected countries and the prospects of a peace deal in Ukraine appeared to recede.
Read MoreEuro Markets: EUAs give up early gains as weekend political tensions fail to support gas spike
EU carbon allowance prices jumped as much as 2.6% at the opening on Monday in line with sizeable spikes in natural gas and power, but gave up much of the early gain as gas prices retreated, even after Friday evening’s highly-charged meeting between the US and Ukrainian presidents dimmed the chances of a resumption of Russian gas flows to Europe and raised geopolitical tensions across the bloc.
Read MoreEuro Markets: EUAs post biggest February fall in nine years, nearing 2025 low as market tracks gas slump
European carbon prices posted their worst February in nine years, falling back to near their year-to-date low late in the session as the market continued to track the intraday movements in natural gas, which weakened steadily through the day as traders took profit after Thursday’s 10% jump.
Read MoreEuro Markets: Technical bounce triggers 10% jump in natural gas, drives carbon recovery
European carbon was firmer on Thursday, tracking a technical spike in natural gas prices after both markets had fallen for three days in a row after analysts described the gas market as oversold, while participants also highlighted increased hedging of March EUA options.
Read MoreEuro Markets: EUAs extend losses while gas loses another 6% as traders weather “pain” of long positions
European carbon prices fell away to a new year-to-date low as the market was assailed by bouts of selling pressure inspired by volatility in front-month natural gas, which posted a loss of more than 6% for a second day, while weekly Commitment of Traders data showed speculative traders cut their net long position by more than 14% last week.
Read MoreEuro Markets: Afternoon technical selling in gas triggers steep fall in carbon to year-to-date lows
European carbon prices dropped sharply on Tuesday afternoon as weakening sentiment and the breaching of a technical support level triggered a wave of selling in natural gas, encouraging a sizeable sell-off in EUAs ahead of Wednesday’s weekly Commitment of Traders data.
Read MoreEuro Markets: EUAs stage gas-inspired afternoon rally as close correlation remains main driver
European carbon prices clawed back almost all of the morning’s losses of 2.4% on Monday afternoon, after an early boost from Germany’s general election result was quickly wiped out as EUAs resumed their close formation flying with natural gas, with TTF prices also rallying to recover heavy losses to end the day only marginally lower.
Read MoreEuro Markets: EUAs snap losing streak with technical bounce but post 7.3% weekly loss
European carbon allowance prices headed into the weekend with a technical bounce after having fallen near key support levels on Thursday, posting a 1.7% daily gain as traders covered short positions after the steep decline over the last few days, while UKAs made a late recovery after having earlier lost as much as 17% since last Friday.
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