Emissions Trading / Carbon Market News (2018-10-22)

Dear Sir or Madam,

According to the organizers on Saturday, 670,000 demonstrators participated in a rally in favor of a second referendum on Brexit. The people moved through central London to the parliament, in order to express to the politicians a particularly strong signal of the alleged popular will. But the demonstration prospectively will have little effect, as the political sentiment in parliament has clearly changed in favor of a withdrawal. In addition, according to a recent survey, around 20 percent of British industrial companies have already put their plans into action in the event of a hard Brexit, and it should be as much as 80 percent by the end of the year. In addition to downsizing, this includes relocation of production, the building up of additional storage capacities to cushion bottlenecks, the adjustment of contractual conditions and, finally, the postponement of investment decisions.

According to Prime Minister May, moreover, 95 percent of the withdrawal conditions are negotiated. Nevertheless, the issue of border regulation in Ireland remains a problem when leaving the European family of states, but this has primarily a religious-historical background.

The CO2 market was initially very bearish last week. From its level just above the 20-euro mark, the price passed quickly towards the south at the beginning of the week. On Tuesday, the price fell temporarily below 18 euros, which was used immediately as a buy signal. A similar scenario was repeated on Thursday, but buyers reacted already above the 18-euro mark this time, raising the price to a range between EUR 19.50 and EUR 20.00.


(Average Quotes Exchange / OTC)      
Instrument 2018-10-12 2018-10-19 Change
EUA (Spotmarket) 20.35 EUR 19.71 EUR -0.64 EUR
EUA (December-2018-Future) 20.39 EUR 19.76 EUR -0.63 EUR
CER (Spotmarket) 0.28 EUR 0.28 EUR +0.00 EUR
ICE Brent Crude Oil (Benchmark Future) 81.53 USD 79.95 USD -1.58 USD
EURO (Currency, Forex) 1.1576 USD 1.1517 USD -0.0059 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