Dear Sir or Madam,
The price of
crude oil continued to rise significantly in the past trading week. Reports of
differential developments in US and Saudi Arabia volumes were less important
than the apparent political easing in the trade dispute between the US and
China.
By contrast, February was far from a good month for the carbon market. Thus,
the price of emission allowances in the first trading week of the month climbed
just over the 24-euro mark. But then it went only southbound. Within a short
period of time, a sustained correction in the price led downwards through all
psychologically important marks until the price at EUR 18.40 finally found
firmer ground. On Friday there was even a short trip over the 19-euro-line, but
a real turnaround has not yet reached.
The reason for this correction are clearly the free allocations that have to be
issued by the member states of the ETS each year until February 28th. Many
companies use this opportunity to sell certificates, which regularly puts a
strain on the market. A year ago, the correction was not quite so clear, as the
price level was still below 10.00 EUR. With a range between 20.00 EUR and 25.00
EUR, the attraction to achieve special proceeds was, of course, much more
pronounced this year, so that the bears clearly determined the market. However,
current prices are likely to encourage companies soon to buy for their current
compliance and thus push the price again.
| (Average Quotes Exchange / OTC) | |||
| Instrument | 2019-02-15 | 2019-02-22 | Change |
| EUA (Spotmarket) | 20.30 EUR | 18.80 EUR | -1.50 EUR |
| EUA (December-2019-Future) | 20.42 EUR | 18.94 EUR | -1.48 EUR |
| CER (Spotmarket) | 0.23 EUR | 0.23 EUR | +0.00 EUR |
| ICE Brent Crude Oil (Benchmark Future) | 66.05 USD | 67.13 USD | +1.08 USD |
| EURO (Currency, Forex) | 1.1292 USD | 1.1338 USD | +0.0046 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