Emissions Trading / Carbon Market News (2019-01-21)

Dear Sir or Madam,

The price of oil has risen sharply during the third consecutive trading week and has rallied around 9.00 USD a barrel during this period. In addition to the hope for a change of attitude in the trade dispute between the USA and China, a clear cut in production volumes from ??the OPEC countries pushed the price significantly up. Although some analysts forecast an even stronger price increase, some factors tend to argue against it. Thus, according to the abovementioned reduction in production, the total output is still well above the demand level and at the same time the USA has reported a record output of 11.9 million barrels per day.

While In June 2016, the relatively surprising outcome of the British referendum on leaving the European Union had triggered a huge drop in emissions allowances, this topic currently no longer plays a significant role. Neither the failed vote on the Brexit deal on Tuesday, nor the failed vote on the motion of no confidence against Theresa May, had a negative effect on the price performance of the EUAs.

Instead, the icy winter temperatures and the constantly rising oil prices pushed CO2 close to the 25 euro mark. Thus, even in the current trading week, it is unlikely that the political events in London and Brussels will affect the price of pollution rights.

(Average Quotes Exchange / OTC)      
Instrument 2019-01-11 2019-01-18 Change
EUA (Spotmarket) 22.59 EUR 24.83 EUR +2.24 EUR
EUA (December-2019-Future) 22.60 EUR 24.86 EUR +2.26 EUR
CER (Spotmarket) 0.24 EUR 0.24 EUR +0.00 EUR
ICE Brent Crude Oil (Benchmark Future) 60.40 USD 62.59 USD +2.19 USD
EURO (Currency, Forex) 1.1466 USD 1.1367 USD -0.0099 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