Emissions Trading / Carbon Market News (2019-02-18)

Dear Sir or Madam,

According to the German Energy State Secretary Andreas Feicht, Germany will not tackle any reform affecting CO2 pricing in the heat and transport sectors. However, by the end of the current legislative period in 2021, they want to work out proposals in order to be able to make basic decisions in this regard. Proponents of a steering effect based on the taxation of fossil fuels and concomitant relief in the price of electricity for the end customer must therefore exercise patience accordingly.

Last week, the price of one barrel of Brent crude rose significantly to over $ 66. The reason for this is the significant decline in OPEC production volumes. OPEC had announced a daily cut in production of 800,000 barrels since October in its November meeting, but OPEC now reported that its daily output had dropped by 1.55 million barrels, nearly twice the planned amount. A major reason for this was the US sanctions against Iran, which is why 600,000 barrels less daily were promoted. But Saudi Arabia also made a significant contribution to the decline with a cut of 424,000 barrels.

In the meantime, the prices for CO2 emission certificates could not benefit from this, as prices plunged below the € 20 mark for the first time this year. At the end of the trading week they were able to recover and closed well above the psychologically important mark of 20 euros.

Even if the spring-like mid European winter weather is rather stressful for the prices, the new trading week starts in the plus range. This could have been due to the fact that only 10,694,000 emission rights will be auctioned this week at the Leipzig EEX, as there will be no Polish auction and thus 4,428,500 EUAs will be less on the market.

(Average Quotes Exchange / OTC)      
Instrument 2019-02-08 2019-02-15 Change
EUA (Spotmarket) 22.20 EUR 20.30 EUR -1.90 EUR
EUA (December-2019-Future) 22.37 EUR 20.42 EUR -1.95 EUR
CER (Spotmarket) 0.22 EUR 0.23 EUR +0.01 EUR
ICE Brent Crude Oil (Benchmark Future) 62.00 USD 66.05 USD +4.05 USD
EURO (Currency, Forex) 1.1321 USD 1.1292 USD -0.0029 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