Euro Markets: EUAs give up two days of gains on technical, energy selling after COT shows funds cut shorts
EU carbon allowance prices fell back on Wednesday amid a wider retreat in energy markets, as weekly positioning data showed speculative players had cut their net short position in carbon significantly, easing the upward pressure on prices, while investment funds continued to add length in natural gas.
Read MoreEuro Markets: EUAs climb as much as 2% to test significant technical resistance before late slide
European carbon prices resumed the recovery that began late last week, erasing Monday’s loss and surpassing Thursday and Friday’s intraday peaks to set a new eight-week high, as buyers returned to the market and pushed prices close to technical resistance levels, before a late dip amid renewed selling.
Read MoreEuro Markets: EUAs rally after losing 3.5% amid cross-market sell-off as buyers hold steady
European carbon prices ended Monday down by 0.9% after rallying from an earlier 3.5% drop amid healthy buying, even as all energy markets fell from the start of the day when geopolitical tensions were judged to be lessening in the wake of Israeli attacks on military targets in Iran over the weekend.
Read MoreEUA winter price outlook hinges on weather, speculative positions in TTF –analyst
The outlook for EUA prices over the coming winter will largely depend on whether natural gas prices can hold on to their recent gains and whether speculative investors continue to hold significant long positions in TTF derivatives, according to an analyst.
Read MoreUK’s 2025 auction schedule shows 19% volume reduction from 2024
The main futures exchange that handles UK Allowances trade announced its auction programme for 2025 late on Friday, revealing a 19% drop in auction supply next year.
Read MoreEuro Markets: EUAs record biggest weekly rise since May as gas-driven market consolidates gains
European carbon allowances posted the largest weekly increase in nearly six months, advancing 7.5% in five days as prices consolidated the gains made over the previous two sessions in line with gas prices reaching a two-month high, while traders speculated that the recent rally from the €60.00 level may have signalled the bottom of the market for the rest of the year.
Read MoreUK publishes proposed regulations formalising changes to ETS announced last year
The UK government has formally proposed legislation across the country’s four parliaments that would put into effect major changes to the British carbon market that were announced last year, according to a statement from the ETS Authority.
Read MoreEuro Markets: Short-covering extends to second day, fuelling 2.7% gain as technical levels fall
European carbon prices advanced strongly for a second session on Thursday amid renewed short-covering in high volume, as the secondary market breached key technical levels and pulled energy prices higher, while UKAs ended their recent winning run.
Read MoreEuro Markets: EUAs erase five days of losses as short-covering pushes market through technical levels
European carbon allowances erased the last five days’ losses after a steep mid-morning rally on Wednesday was triggered by closing out of short positions that helped prices breach technical resistance levels, as the weekly Commitment of Traders data showed investment funds had only marginally added to their bearish bets.
Read MoreEuro Markets: EUAs post modest gain after cross-market price spike halts downward momentum
European carbon allowance prices clawed back early losses to end Tuesday modestly firmer, after a momentary spike in natural gas and power on reports of a North Sea outage halted the market’s downward momentum and paved the way for a gradual recovery after several days of steady selling pressure.
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