Dear Sir or Madam,
If we talked about a new seven-year high at EUR 11.50 in our last market news, we now have to report that actually already the 13-euro mark has been tested. After that, although it came to profit taking, the price has since found a level around the mark of 12.50 EUR.
Of course, looking at the details of this development, it is easy to conclude that the market is dominated by speculative traders who clearly bet on significantly rising prices. The bullish attitude was further fueled last week by news from European politics. For example, the International Energy Agency announced that global energy-related CO2 emissions rose again in 2017 for the first time after a three-year break. Strong economic growth boosted the use of fossil fuels, while energy efficiency measures seemed unpopular.
However, one of the decisive political statements with price-supporting effects was the statement from Great Britain that despite Brexit the cap-and-trade system will be favourably disposed and that the country will remain in the ETS at least until the end of the trading period.
French President Emmanuel Macron has also signaled on Thursday that he will continue to push for an EU carbon price floor, which also includes a border tariff for countries, that did not sign the Paris contract, despite the still very limited support that both ideas have so far from European partners.
Against this background, the auctions were literally stormed last week. However, many bidders did not make the move, which put significant pressure on the spot market. As a result, we saw sales of well over 30 million allowances a day and extreme price jumps.
The oil market also received a significant boost in the past week due to political news. The increase in prices was fueled by investors’ concern about a harsher US action against the big producing country and OPEC member Iran. On Friday had become known that US President Donald Trump will replace his previous security adviser McMaster by John Bolton, which brings a similar attitude with into the White House.
|(Average Quotes Exchange / OTC)|
|EUA (Spotmarket)||12.58 EUR||11.15 EUR||+1.43 EUR|
|EUA (December-2018-Future)||11.61 EUR||11.17 EUR||+1.44 EUR|
|CER (Spotmarket)||0.20 EUR||0.19 EUR||+0.01 EUR|
|ICE Brent Crude Oil (Benchmark Future)||69.71 USD||66.13 USD||+3.58 USD|
|EURO (Currency, Forex)||1.2357 USD||1.2289 USD||+0.0068 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
Advantag Services GmbH
Comp. Register 12470
Tax Number 113/5701/2175
Raik Oliver Heinzelmann
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