Euro Markets: EUAs toy with key technical support as sellers still in charge in thin market
European carbon moved in a comparatively narrow range but ended Thursday flirting with a key technical support level, as trading calmed amid the US Thanksgiving holiday, and energy drifted lower as markets sought direction.
Read MoreEuro Markets: EUAs touch seven-day low as gas weakens, UKAs slide as reform hopes dim
EU carbon prices dropped to their lowest in seven days on Wednesday along with a decline in natural gas, as weekly position data showed investment funds building length for a third week in a row, while UKAs also dropped to their lowest in seven weeks amid heavy trading with some participants losing patience over long-awaited market reforms.
Read MoreEuro Markets: EUAs, gas give up Monday gains even as carbon settles into new range
European carbon prices declined on Tuesday amid bouts of sustained selling that drove the market down by 2.3% at one point, as natural gas tumbled by as much as 3.7%, before a late rally in both trimmed losses, helping to consolidate EUAs in a new range.
Read MoreEuro Markets: EUAs advance as much as 3.3% before energy-wide sell-off caps gains
European carbon prices set a new 12-week high on Monday, as the strong correlation with bullish natural gas initially dragged EUA prices higher, before news of a possible ceasefire in Lebanon triggered a general sell-off across all energy markets.
Read MoreEuro Markets: EUAs post 1.9% weekly gain despite Friday’s gas-fuelled sell-off, as coal takes pole position
European carbon prices posted a 1.9% weekly gain despite a steady decline on Friday amid some end-of-week profit taking that also pushed natural gas prices down, and shrugging off an ongoing shift in plant economics that analysts said puts coal ahead of gas for power generation over the next three months.
Read MoreEuro Markets: Carbon rides to 12-week high on gas’ coattails, sets up camp above key level
EU carbon prices were pulled to their highest in 12 weeks, above a key level, on Thursday by growing concerns over rising geopolitical tensions in Ukraine and a short unplanned North Sea outage, which encouraged natural gas traders to buy, helping carbon to breach an important psychological level for the second time this week.
Read MoreEuro Markets: Carbon edges higher but fails to take strength from 2.5% rally in gas, as funds flip to length
EU carbon allowances edged higher on Wednesday, posting a modest gain but failing to take strength from a 2.5% climb in front-month gas prices, while weekly positioning data showed investment funds held their first net long position in 15 months.
Read MoreEuro Markets: EUAs fall back with gas as profit-taking takes steam out of TTF rally and EUA sellers return
EU carbon prices fell back on Tuesday after their 2.2% jump on Monday amid a decline in the benchmark natural gas market, as gas traders were said to take profit after Monday’s rally, and sellers of EUAs dominated ahead of Wednesday’s weekly positioning data.
Read MoreEuro Markets: Firm auction triggers technical buying that takes EUAs to new 11-week high above key level
EUAs rose to yet another 11-week high and breached a key level on Monday after a stronger than usual auction outcome appeared to trigger a wave of technical and speculative buying that moved the market as much as €2.00 higher, as gas prices were only modestly firmer amid forecasts for more wind, and prompt power rose as much as 7%.
Read MoreEuro Markets: Carbon drops marginally after volatile session as gas reacts to supply cut headlines
European carbon saw a volatile end to the week, giving up a strong opening surge to a 10-week high to fall by 2.2% at one stage and eventually recording an 0.4% drop on the day, as allowance prices were whipsawed by a volatile gas market reaction to news that one EU gas buyer was set to be cut off by its Russian supplier this weekend.
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