Euro Markets: Bulls drive late spike in EUA prices to erase early losses, defend positions ahead of auction pause
European carbon prices jumped late in the session on Tuesday as bullish traders drove prices higher ahead of the settlement window to defend the recent rally in the face of growing bearish sentiment, while UKAs gained by the most in the market’s history after the Financial Times reported that the British government has asked for relinking to the EU ETS to be added to the agenda of an upcoming summit in Brussels.
Read MoreUKAs surge on reports of British govt push for ETS linkage with EU
UK carbon prices rallied above £40 on Tuesday on reports describing a push from Prime Minister Keir Starmer’s government to link the British emissions trading market to that of the EU – a plan strongly supported by the Scottish government.
Read MoreEuro Markets: EUAs drop in sync with gas, equities as bears try to correct ‘over-stretched’ market
European carbon prices began the week with a move lower as bearish traders sought to impose their views but ran into stubborn defence at technical levels, while natural gas eased back as the supply outlook improved even as EU storage levels fell to around 15% below the same time last year.
Read MoreEuro Markets: EUAs settle at 15-month high above technical level as bulls protect 3% weekly gains
European carbon prices settled at their highest in 15 months on Friday, capping a 3% weekly gain as bullish positioned traders protected the recent rally by driving prices up by close to €2/tonne in the afternoon, and generating a settlement price above a key technical level.
Read MoreEuro Markets: EUAs hit 15-month high, breach technical levels as power drives carbon strength
European carbon prices jumped as much as 3.6% on Thursday and touched a 15-month high as a rise in German power prices pulled gas and EUAs upwards, breaching technical levels for carbon and triggering more discussion about the market’s increasing speculative length.
Read MoreEuro Markets: EUAs snap winning streak as funds amass largest net long position in almost 3 years
European carbon allowance prices weakened on Wednesday, snapping their record-equalling nine-day winning streak as the market appeared unable to shake off growing bearish sentiment, while the weekly Commitment of Traders data showed investment funds last week amassed their largest net long position in nearly three years.
Read MoreEuro Markets: EUAs rally to extend winning streak, matching record after gas spikes on storage news
European carbon prices ended a volatile Tuesday slightly higher, matching the record of nine successive daily increases, after early weakness amid technical signals pointing to an overbought market was brushed aside following a jump in natural gas prices on updated German storage regulations, while UK Allowances steadied after bouncing back from Monday’s record low.
Read MoreCOMMENT: The UK ETS’ inbuilt advantage means reforms can take more time
This spring, UK Prime Minister Keir Starmer and European Commission president Ursula von der Leyen will meet to discuss UK-EU relations and future areas of cooperation as the new relationship between the two develops. Linking the UK and EU ETS could be on the agenda.
Read MoreEuro Markets: EUAs rise for 8th successive session despite growing doubts, as UKAs drop to new record low
European carbon prices advanced for a record-equalling eighth session in a row on Monday as prices enjoyed a boost from a spike in the gas market even as traders saw a growing chance of a sell-off, while UKAs set a new record low as confidence continued to ebb in the British government’s ability to quickly progress the market reform agenda, and the prospects for linking the EU and UK markets remain low.
Read MoreEuro Markets: EUAs top significant level as speculative buyers continue to bolster prices, as UKAs weaken again
European prices forged higher for a seventh consecutive day on Friday, breaching an important psychological level during the session before posting a 5.9% weekly gain as buyers kept control of the price action, while energy markets followed the strength in EUAs across the board but UKAs weakened again to their least since the market’s record low a year ago.
Read More