Emissions Trading / Carbon Market News (30/03/2020)

Dear Sirs and Madams,

There is certainly no lack of comments and assessments on the global corona crisis these days. In any case, it is a unique opportunity to observe how people react in crisis mode. Because all people are decision makers. Whether one has to make decisions for oneself, for a family, a company or a state. As the sometimes very controversial discussions show, it is of course anything but easy to make the right decisions and to foresee the consequences completely correctly.

Just how difficult this is can also be seen in the various markets. The oil price, for example, has so far lost almost 60 percent compared to the beginning of the crisis. Last night, the price fell once again, dropping to its 2002 low as the market was just processing the attack on the World Trade Centre. The trigger for the rather unexpected further drop in price could have been the renewed reversal in the assessment of the situation by US President Donald Trump, who suddenly spoke of a limit of 100,000 deaths being a success in the United States due to the virus. The fact that two major players in the oil market, Saudi Arabia and Russia, have apparently got caught up in a price war is also a burden.

The CO2 market, on the other hand, has been slightly optimistic in the past trading week. At the beginning of the week, the price of the December contract on the London ICE faced its lowest point since the beginning of the crisis at a nominal EUR 14.34, but during the week, it tendered up to EUR 17.80. This high volatility on a weekly basis still speaks for the uncertainty of many traders, but a factually correct decoupling from the oil price can also be seen.

  (Average Quotes Exchange / OTC)      
Instrument 20/03/2020 27/03/2020 Change
EUA (Spotmarket) 16.02 EUR 16,31 EUR +0.29 EUR
EUA (December-2019-Future) 16.11 EUR 16,39 EUR +0.28 EUR
CER (Spotmarket) 0.29 EUR 0,29 EUR +0.00 EUR
ICE Brent Crude Oil (Benchmark Future) 27.21 USD 28,15 USD +0.94 USD
EURO (Currency, Forex) 1.0688 USD 1,1169 USD +0.0481 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.

With kind regards,

Advantag Services GmbH