Emissions Trading / Carbon Market News (10/02/2020)

Dear Sir or Madam,

in the north of Germany, the hurricane “Sabine”, has weakened and is now moving further south. As a result, some 20,000 households in Bavaria were cut off from the power grid this morning. Initial reports from the north and centre of Germany speak of injured people, destroyed houses and cars, closed motorways and massive disruption to rail and air traffic. Apparently, the highest wind speed of 177 km/h was measured on the Feldberg. Also, from England, Scotland and the Netherlands, where the hurricane was given the name “Chiara”, massive damages are reported. And the storm will probably continue to keep Europe in suspense in the coming days, causing considerable disruption with wind speeds of up to 150 km/h and heavy rain and snowfall.

At about the same time, the Argentinean Antarctic research station Esperanzan reports the highest temperature ever measured, at 18.3 degrees Celsius. This significantly exceeds the previous temperature record of 17.5 degrees from 2015. The melting of glaciers and ice sheets in the Antarctic as a result of global warming is being watched with concern by scientists, as it is a major factor in the rise of sea levels worldwide.

A look at the price of CO2 emission rights shows a further decline in the past trading week. Weak economic data from Europe and significantly weaker demand from China initially pushed the price of crude oil further down for the week. Although news of a possible cutback in production volumes by the OPEC+ countries initially provided a short-term recovery, the uninterrupted spread of the corona virus is a significant burden on the market.

The price of European Pollution Rights followed the price of Crude Oil last week in a conspicuous manner and starts the new trading week weakened once again.

  (Average Quotes Exchange / OTC)      
Instrument 31/01/2020 07/02/2020 Change
EUA (Spotmarket) 23.81 EUR 23.28 EUR -0.53 EUR
EUA (December-2019-Future) 23.88 EUR 23.34 EUR -0.54 EUR
CER (Spotmarket) 0.22 EUR 0.21 EUR -0.01 EUR
ICE Brent Crude Oil (Benchmark Future) 56.62 USD 54.50 USD -2.12 USD
EURO (Currency, Forex) 1.1090 USD 1.0944 USD -0.0146 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.

With kind regards,

Advantag Services GmbH