Emissions Trading / Carbon Market News (2018-08-27)

Dear Sir or Madam,

The Hausse is feeding the Hausse, say the exchange traders, and the European CO2 emission rights have now been running up since the end of last year. While the EUA closed exactly one year ago at EUR 6.09 per tonne of CO2, we have now, 12 months later, broken the 20 euro barrier and closed at EUR 20.70 on the spot market at the end of last week’s trading. This is an immense increase of 14.36% on a weekly basis or 239.90% on an annual basis.

The EUA price increases were accompanied by an impressive rise in oil prices, which were 5.59% higher on a weekly basis because US crude oil inventories had fallen by 5.8 million barrels due to lower net imports.

On Friday, however, it was clearly noticeable in the emissions trading market that market participants are increasingly hectic, even if only a slightly negative impulse is set. Shortly after 11:00 a.m., the EEX auction results of EUR 20.55 each for the 2,180,000 emission certificates became known, which was a few cents below the current stock exchange price with a lower number of bidders. As a result, some market participants closed long positions, which led to a brief but noticeable drop in prices from around EUR 20.60 per EUA to less than EUR 20.

This week, a total auction volume of just 8,088,500 EUA will be offered on the EEX, as no auction is taking place today due to the British bank Summer Holiday.

The summer break will end next week and the regular auction volume will be available again. Even if no auction is held for an EEX event on Thursday after next, a total of 18,528,000 allowances will be auctioned off on EEX and ICE. In the following 37th calendar week the auction volume will then rise to 21,501,000 EUA.

It therefore remains to be seen whether the price rises will continue at the higher auction volume or whether the market will enter a consolidation phase.


(Average Quotes Exchange / OTC)      
Instrument 2018-08-17 2018-08-24 Change
EUA (Spotmarket) 18.10 EUR 20.70 EUR +2.60 EUR
EUA (December-2018-Future) 18.14 EUR 20.75 EUR +2.61 EUR
CER (Spotmarket) 0.27 EUR 0.29 EUR +0.02 EUR
ICE Brent Crude Oil (Benchmark Future) 71.73 USD 75.74 USD +4.01 USD
EURO (Currency, Forex) 1.1437 USD 1.1620 USD +0.0186 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