Euro Markets: Midday Update
EU allowance prices ground their way higher on Thursday morning amid steady but unspectacular buying, tracking firming natural gas prices, but remaining locked within the €63.00-€65.00 range that has been in place ahead of next week’s September options expiry.
Read MoreEuro Markets: EUAs extend losses as jump in speculative net shorts fails to trigger squeeze
EU carbon prices fell for the fourth time in the last five days as sellers continued to dominate, despite a second strong build in speculative short positions that had prompted some participants to predict a short squeeze, while energy markets continued to see-saw in response to conflicting pressures of bearish demand, healthy storage levels, and continuing concerns over longer-term supply.
Read MoreEuro Markets: EUAs end 3-day losing streak after early 5-month low amid strong natural gas rally
European carbon prices set a new five-month low before bouncing sharply on Tuesday and unwinding the last two days of losses, tracking an equally strong gas market as compliance buying interest appeared to provide a floor for prices.
Read MoreEuro Markets: EUAs drop to five-month low amid sustained selling, ignoring record auction premium
EU carbon permit prices dropped to a five-month low on Monday afternoon, ignoring the largest-ever premium for a daily auction amid reported demand from options hedging, as sellers continued to lay siege to the market, and gas and power dropped to a seven-week and five-month lows respectively.
Read MoreEuro Markets: EUAs hit new 7-week low, fall 2% on week but remain rangebound as gas awaits direction
EU carbon allowances fell for a fourth straight week, shedding a little over 2% from last Friday as prices spent the morning in positive territory, before falling to a seven-week low in the afternoon as they struggled to match a more resilient natural gas market.
Read MoreEuro Markets: EUAs give up some of Wednesday’s gains on strong correlation with weaker gas
European carbon allowance prices fell back in line with a weaker gas market on Thursday, retracing about half of Wednesday’s 2.3% gain as EUAs continued to fluctuate in their recent options-driven €2 range near a five-month low, with traders seeing little incentive for levels to break out.
Read MoreEuro Markets: EUAs rally 2.3% as increase in funds’ net short triggers renewed buying
European carbon prices rallied on Wednesday morning as weekly positioning data showed that investment funds more than doubled their net short positions last week, triggering a rally as traders looked to test the conviction of bearish bets.
Read MoreUK businesses show varied progress towards net zero -survey
A UK survey on corporate net zero progress found that 73% of respondents consider achieving net zero a medium- or high-priority over the next year, only 65% have committed to the 2050 target, and just 48% have set net zero goals to be met within the next decade.
Read MoreDrax urges BECCS support as critical to meeting UK clean power goal by 2030
Drax is looking to the UK government to begin discussions soon on a contract to support the company’s incoming bioenergy with carbon capture and storage (BECCS) project, to ensure that the plant can contribute to the country’s goal for clean power by 2030, a Drax official said on Wednesday.
Read MoreEuro Markets: EUAs tumble to 7-week low as natural gas comes under pressure, options expiry looms
European carbon allowances dropped sharply on Tuesday as natural gas prices fell as much as 6.1% on diminishing concerns that US Gulf production might be impacted by an approaching tropical storm, while the looming September EUA options contract expiry was said to be starting to exert a pull on prices.
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