Emissions Trading / Carbon Market News (24/02/2020)

Dear Sir or Madam,

the European pollution rights have become significantly more expensive for another week in a row, and in the second half of the week they started moving towards the 26-euro mark. Moderate but persistent optimism on the corona virus supported the markets, which was also reflected in oil prices.

During the weekend, however, there was alarming news of new infections from South Korea and Italy, which put into question the apparent easing signaled by China. In a globalised world, the spread of a new virus appears to be increasingly difficult to control.

As a result of this situation, the oil price fell by almost two US dollars over the weekend and pulled down the CO2 emission certificates at the start of trading this morning.

At the ICE in London the auction dates for the accumulated British EUA were announced as expected. In a rather relaxed rhythm of two to three auctions per month, this year, starting with around 5.7 million allowances on 4 March, a total of little more than 125 million EUAs will be auctioned in London on Wednesdays. However, this should not lead to additional price pressure, as the figures were known for a long time.

  (Average Quotes Exchange / OTC)      
Instrument 14/02/2020 21/02/2020 Change
EUA (Spotmarket) 24.24 EUR 25.55 EUR +1.31 EUR
EUA (December-2019-Future) 24.29 EUR 25.61 EUR +1.32 EUR
CER (Spotmarket) 0.25 EUR 0.24 EUR -0.01 EUR
ICE Brent Crude Oil (Benchmark Future) 57.34 USD 58.44 USD +1.10 USD
EURO (Currency, Forex) 1.0831 USD 1.0848 USD +0.0017 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