Emissions Trading / Carbon Market News (2019-04-15)

Dear Sir or Madam,

The EU gives Britain half a year more time, thus preventing a disorderly Brexit for the time being. By 31.10.2019 at the latest, the British are now out of the EU. The 29.03.2019 was originally the planned exit date, but the EU has already granted an extension until last Friday.

Now that a chaotic no-deal Brexit is off the table for at least a couple of months, CO2 emissions rights rose sharply last week, reaching an 11-year high. At the top, the December 2019 future was € 27.85 per EUA last Friday, but the trading session was visibly down again. On a weekly basis, an increase of 8% to EUR 26.58 on the futures market ultimately remained.

Even though in the current trading week at 7,485,000 EUA, due to Good Friday, only about half of the previous week’s auction volume will be auctioned at the Leipzig EEX, the overbought market would need time to breathe. In spite of Easter Monday, 12,627,500 emission allowances will be auctioned again in the coming trading week, since in addition to the EU auctions, EUAs will also be offered from German and Polish contingents.

(Average Quotes Exchange / OTC)      
Instrument 2019-04-05 2019-04-12 Change
EUA (Spotmarket) 24.52 EUR 26.49 EUR +1.97 EUR
EUA (December-2019-Future) 24.60 EUR 26.58 EUR +1.98 EUR
CER (Spotmarket) 0.23 EUR 0.24 EUR +0.01 EUR
ICE Brent Crude Oil (Benchmark Future) 70.37 USD 71.79 USD +1.42 USD
EURO (Currency, Forex) 1.1214 USD 1.1298 USD +0.0084 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