Emissions Trading / Carbon Market News (09/03/2020)

Dear Sir or Madam,

OPEC tried to cut production to stabilize prices at the end of last week, but failed in negotiations with Russia. Originally, the daily production limits were to be reduced by a further 1.5 million barrels.

The issue of the corona virus currently dominates the financial and raw materials markets clearly, which is why the oil cartel considered this measure to be necessary. From OPEC’s point of view, it made more sense to extract a little less oil, but to realize more yields due to the rising prices.

As of Friday, Brent Crude Oil lost a good $ 5.00 and further negative reports regarding the European corona virus over the weekend caused a veritable crash on the market this morning. The oil price declined a good 30% and was just in the low at just over USD 31.

The fact that the oil price repeats itself quickly depends not least on signals from Russia, whether they are still giving in to support market prices. Russia is by far the largest oil supplier for Germany.

The German DAX index also lost more than 7% in early trading, while gold and the euro, on the other hand, benefit from the current market situation.

The prices for European CO2 emission allowances also fell significantly this morning by more than 3%, which is, however, significantly less than could be expected in relation to the oil crash. With a current price of around EUR 22.50 per EUA, the price is not far from the 6-month low of EUR 22.26 on October 9, 2019.

In the coming days, the nervousness of the financial and commodity markets will remain price-setting due to the fear of a recession regarding emission rights.

  (Average Quotes Exchange / OTC)      
Instrument 28/02/2020 06/03/2020 Change
EUA (Spotmarket) 23.55 EUR 23.40 EUR -0.15 EUR
EUA (December-2019-Future) 23.61 EUR 23.42 EUR -0.19 EUR
CER (Spotmarket) 0.26 EUR 0.29 EUR +0.03 EUR
ICE Brent Crude Oil (Benchmark Future) 50.06 USD 45.46 USD -4.60 USD
EURO (Currency, Forex) 1.1026 USD 1.1284 USD +0.0258 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.)

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With kind regards,

Advantag Services GmbH