Month: February 2019

Dear Sir or Madam,

The price of crude oil continued to rise significantly in the past trading week. Reports of differential developments in US and Saudi Arabia volumes were less important than the apparent political easing in the trade dispute between the US and China.

By contrast, February was far from a good month for the carbon market. Thus, the price of emission allowances in the first trading week of the month climbed just over the 24-euro mark. But then it went only southbound. Within a short period of time, a sustained correction in the price led downwards through all psychologically important marks until the price at EUR 18.40 finally found firmer ground. On Friday there was even a short trip over the 19-euro-line, but a real turnaround has not yet reached.

The reason for this correction are clearly the free allocations that have to be issued by the member states of the ETS each year until February 28th. Many companies use this opportunity to sell certificates, which regularly puts a strain on the market. A year ago, the correction was not quite so clear, as the price level was still below 10.00 EUR. With a range between 20.00 EUR and 25.00 EUR, the attraction to achieve special proceeds was, of course, much more pronounced this year, so that the bears clearly determined the market. However, current prices are likely to encourage companies soon to buy for their current compliance and thus push the price again.

(Average Quotes Exchange / OTC)
Instrument	2019-02-15	2019-02-22	Change
EUA (Spotmarket)	20.30 EUR	18.80 EUR	-1.50 EUR
EUA (December-2019-Future)	20.42 EUR	18.94 EUR	-1.48 EUR
CER (Spotmarket)	0.23 EUR	0.23 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	66.05 USD	67.13 USD	+1.08 USD
EURO (Currency, Forex)	1.1292 USD	1.1338 USD	+0.0046 USD

(The average exchange quotes and OTC-prices shows the average between bids and ask of several exchanges and OTC markets for carbon emission rights in the ETS. Bid and ask has usually in Spot Market a visible spread. CER CP1 and ERU are eligible in ETS until end of March 2015 and must be swapped into EUA. Crude Oil and Euro Currency shows day-end-exchange quotes. This market information has just an informational character and are no advice or offer to trade carbon emission rights or their futures and options. If you want to unsubscribe, please reply to this mail.)

Please call our international carbon desk if any further questions exist: +49.2831.1348220 or +44.20.79790283.

With kind regards,

Advantag Services GmbH

Dear Sir or Madam,

According to the German Energy State Secretary Andreas Feicht, Germany will not tackle any reform affecting CO2 pricing in the heat and transport sectors. However, by the end of the current legislative period in 2021, they want to work out proposals in order to be able to make basic decisions in this regard. Proponents of a steering effect based on the taxation of fossil fuels and concomitant relief in the price of electricity for the end customer must therefore exercise patience accordingly.

Last week, the price of one barrel of Brent crude rose significantly to over $ 66. The reason for this is the significant decline in OPEC production volumes. OPEC had announced a daily cut in production of 800,000 barrels since October in its November meeting, but OPEC now reported that its daily output had dropped by 1.55 million barrels, nearly twice the planned amount. A major reason for this was the US sanctions against Iran, which is why 600,000 barrels less daily were promoted. But Saudi Arabia also made a significant contribution to the decline with a cut of 424,000 barrels.

In the meantime, the prices for CO2 emission certificates could not benefit from this, as prices plunged below the € 20 mark for the first time this year. At the end of the trading week they were able to recover and closed well above the psychologically important mark of 20 euros.

Even if the spring-like mid European winter weather is rather stressful for the prices, the new trading week starts in the plus range. This could have been due to the fact that only 10,694,000 emission rights will be auctioned this week at the Leipzig EEX, as there will be no Polish auction and thus 4,428,500 EUAs will be less on the market.

(Average Quotes Exchange / OTC)
Instrument	2019-02-08	2019-02-15	Change
EUA (Spotmarket)	22.20 EUR	20.30 EUR	-1.90 EUR
EUA (December-2019-Future)	22.37 EUR	20.42 EUR	-1.95 EUR
CER (Spotmarket)	0.22 EUR	0.23 EUR	+0.01 EUR
ICE Brent Crude Oil (Benchmark Future)	62.00 USD	66.05 USD	+4.05 USD
EURO (Currency, Forex)	1.1321 USD	1.1292 USD	-0.0029 USD

(The average exchange quotes and OTC-prices shows the average between bids and ask of several exchanges and OTC markets for carbon emission rights in the ETS. Bid and ask has usually in Spot Market a visible spread. CER CP1 and ERU are eligible in ETS until end of March 2015 and must be swapped into EUA. Crude Oil and Euro Currency shows day-end-exchange quotes. This market information has just an informational character and are no advice or offer to trade carbon emission rights or their futures and options. If you want to unsubscribe, please reply to this mail.)

Please call our international carbon desk if any further questions exist: +49.2831.1348220 or +44.20.79790283.

With kind regards,

Advantag Services GmbH

Dear Sir or Madam,

Just 40 years ago, the first World Climate Conference took place in Geneva (Switzerland), due to increased environmental awareness in the 1970s. The accelerated industrialization in many parts of the world has already had its first effects; the ozone hole was recognized as well as the forest dying. The Club of Rome published in 1972 with the book “The limits of growth” a work that addressed the problems of using fossil fuels for the atmosphere.

At the end of the 1970s, climate research began, which obtained reliable data through the use of weather satellites. At the same time, data from the now world-famous greenhouse gas monitoring station in Hawaii could be used, which measures the CO2 content in the air at 4,150 meters above sea level at the volcano Mauna Loa. In 1958, this showed a value of just over 300 ppm (parts per million) measured. At the World Climate Conference in 1979, it was already 335 ppm and currently the CO2 concentration is already over 400 ppm. And as knowledge and global temperature increased, scientists became increasingly aware of the link between CO2 emissions and climate change.

Knowledge is therefore not lacking for humanity, but rather for transforming knowledge into appropriate action. Although the introduction of European CO2 emissions trading in 2005 arose out of this, the decarbonization of global industry is proceeding too slowly from the point of view of many scientists. Not least, the topic is present in the population, but hardly anyone really does something for climate protection; The number of air travel continues to increase, as does the number of licensed SUVs or the consumption of low-quality assets in the industrialized nations. And politics does not want to be unpopular with fiscal controls, fearing protests like those in France, which could endanger the next election.

The extension of CO2 emissions trading to other sectors and countries, as well as a high price for direct and indirect greenhouse gas emissions, could take on even more of these necessary control effects. But the price of CO2 emission rights is still too low, even if it has increased significantly in the past twelve months.

In the past trading week, these traded in the range between EUR 21.34 and EUR 24.18 and closed with a plus of 40 cents compared to the previous week at EUR 22.20 in the spot market. Due to the limited application possibilities and the high market offer, the CER also lost another cent and fell to 22 cents on average.

(Average Quotes Exchange / OTC)
Instrument	2019-02-01	2019-02-08	Change
EUA (Spotmarket)	21.80 EUR	22.20 EUR	+0.40 EUR
EUA (December-2019-Future)	21.99 EUR	22.37 EUR	+0.38 EUR
CER (Spotmarket)	0.23 EUR	0.22 EUR	-0.01 EUR
ICE Brent Crude Oil (Benchmark Future)	62.74 USD	62.00 USD	-0.74 USD
EURO (Currency, Forex)	1.1455 USD	1.1321 USD	-0.0134 USD

(The average exchange quotes and OTC-prices shows the average between bids and ask of several exchanges and OTC markets for carbon emission rights in the ETS. Bid and ask has usually in Spot Market a visible spread. CER CP1 and ERU are eligible in ETS until end of March 2015 and must be swapped into EUA. Crude Oil and Euro Currency shows day-end-exchange quotes. This market information has just an informational character and are no advice or offer to trade carbon emission rights or their futures and options. If you want to unsubscribe, please reply to this mail.)

Please call our international carbon desk if any further questions exist: +49.2831.1348220 or +44.20.79790283.

With kind regards,

Advantag Services GmbH

Dear Sir or Madam,

In the past year, the most important North German network operator exceeded for the first time the billions in terms of the costs that were necessary to ensure grid stability. Tennet estimates the costs, which ultimately end up on the electricity bills of end consumers in Germany, at 1.03 billion euros. In 2017, it had also been close to one billion euros due to the windy weather. In 2016, the amount of 660 million euros was still significantly lower due to less wind. In 2015, Tennet reported 710 million euros. Together with the other network operators, the cost of network stabilization in 2017 was 1.4 billion euros. It can be assumed that this amount was not undercut in the past year either. It is therefore right and important that the German Minister for Economic Affairs and Energy, Peter Altmeier, wants to promote the development of power lines as quickly as possible.

Last Friday, the first German auction was held this year, in which 3,209,000 EUAs were auctioned at the EEX in Leipzig. A total of 15,122,500 EUAs were auctioned last week. Compared to the previous week, in which only the auctions of the EU were carried out and thus only 7,485,000 new EUAs came on the market, this was a doubling, which has put the prices of European emission rights under pressure. On a weekly basis, these lost 8.2% and closed at 21.80 euros on the spot market. There will be no Polish auction this week, which means that the auction volume will be lower again with a total of 10,694,000 EUA. The Polish auction always takes place every two weeks and usually includes 4,428,500 EUAs in a primary market auction.

(Average Quotes Exchange / OTC)
Instrument	2019-01-25	2019-02-01	Change
EUA (Spotmarket)	23.76 EUR	21.80 EUR	-1.96 EUR
EUA (December-2019-Future)	23.93 EUR	21.99 EUR	-1.94 EUR
CER (Spotmarket)	0.24 EUR	0.23 EUR	-0.01 EUR
ICE Brent Crude Oil (Benchmark Future)	61.66 USD	62.74 USD	+1.08 USD
EURO (Currency, Forex)	1.1404 USD	1.1455 USD	+0.0051 USD

(The average exchange quotes and OTC-prices shows the average between bids and ask of several exchanges and OTC markets for carbon emission rights in the ETS. Bid and ask has usually in Spot Market a visible spread. CER CP1 and ERU are eligible in ETS until end of March 2015 and must be swapped into EUA. Crude Oil and Euro Currency shows day-end-exchange quotes. This market information has just an informational character and are no advice or offer to trade carbon emission rights or their futures and options. If you want to unsubscribe, please reply to this mail.)

Please call our international carbon desk if any further questions exist: +49.2831.1348220 or +44.20.79790283.

With kind regards,

Advantag Services GmbH