News

Dear Sir or Madam,

The past trading week was quite turbulent. European pollution rights prices ranged between € 12.67 and € 14.22 per ton of CO2, with the latter marking a new seven-year high last Monday. Towards the end of the trading week, after a weak auction demand, the price nearly lost the previous week’s plus, but closed above an important support line just above EUR 13 per EUA.

In the past year, global CO2 emissions trading revenues increased by 45% to $ 32 billion. This includes, among other things, income from CO2 taxes as well as proceeds from the auctioning of emission allowances in global CO2 trading.

On Monday of next week, the deadline for the previous year ends in mandatory European emissions trading. Thus, companies subject to commercial duty still have a few days left to cover themselves with certificates, but in some circumstances they should consider a possible transfer time frame when making their purchase decisions, insofar as the certificates do not come from a trading account. Even if the certificates are transferred from a trading account, the transfer time may be 26 hours, as long as the recipient account is not included in the sender’s trust account list.

 

(Average Quotes Exchange / OTC)
Instrument	2018-04-20	2018-04-13	Change
EUA (Spotmarket)	13.03 EUR	13.90 EUR	+0.94 EUR
EUA (December-2018-Future)	13.05 EUR	13.94 EUR	+0.95 EUR
CER (Spotmarket)	0.20 EUR	0.20 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	73.80 USD	72.44 USD	+5.45 USD
EURO (Currency, Forex)	1.2286 USD	1.2328 USD	+0.0049 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

 

 

 

Dear Sir or Madam,

The fundamental risks in the Middle East have been exacerbated by the attacks of the Americans, the French and the British Forces, while oil stocks in the OECD have continued to fall. This led to a significant increase in crude oil, which boosted not least the price of European emission allowances. On Friday, the price of the EUAs rose to 14.08 euros, before it ended the trading week with a visible increase of just under one euro at 13.90.

Last week, the Potsdam Institute for Climate Impact Research (PIK) published a study that provided scientific evidence that the Gulf Stream is weakening. The Gulf Stream is an important source of heat for the European continent, bringing the warm waters of the West African region across the coasts of Florida to Europe and then to the South of Greenland. This important stream has now slowed by 15% in the past 70 years, due to climate change. The lower the temperature difference between the North Atlantic and the tropical waters, the slower the Gulf Stream. Ultimately this means that only a cold North Atlantic is a guarantee for a strong Gulf Stream, which brings warm air masses from the South to Europe.

In recent years, there have been several scientists who have linked a further weakening of the Gulf Stream with the possibility of the appearance of a small ice age in Europe.

 

(Average Quotes Exchange / OTC)
Instrument	2018-04-13	2018-04-06	Change
EUA (Spotmarket)	13.90 EUR	12.96 EUR	+0.94 EUR
EUA (December-2018-Future)	13.94 EUR	12.99 EUR	+0.95 EUR
CER (Spotmarket)	0.20 EUR	0.20 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	72.44 USD	66.99 USD	+5.45 USD
EURO (Currency, Forex)	1.2328 USD	1.2279 USD	+0.0049 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

Dear Sir or Madam,

According to the German government, the EU should in future invest at least one fifth of its budget in projects that promote climate protection. It thus supports the Green Growth Group’s demand to invest a minimum of 20% of the EU budget from 2021 on appropriate programs and climate-friendly projects. Currently, the German government spends about 3.7 billion annually on climate protection projects, which is just over one percent of the federal budget.

A weaker market environment in the energy sector, especially for oil and electricity, also increased the market for CO2 emission rights last week. For example, prices moved sideways-downwards after lower demand at the auctions, and the EUA lost around 30 cents on a weekly basis against the particularly bullish last week. Only the CER were able to gain slightly in view of the approaching end of the compliance submission deadline for 2017.

Even the start of the new week starts a bit cautiously with a minus of about one percent.

 

(Average Quotes Exchange / OTC)
Instrument	2018-04-06	2018-03-29	Change
EUA (Spotmarket)	12.96 EUR	13.26 EUR	-0.30 EUR
EUA (December-2018-Future)	12.99 EUR	13.28 EUR	-0.29 EUR
CER (Spotmarket)	0.20 EUR	0.19 EUR	+0.01 EUR
ICE Brent Crude Oil (Benchmark Future)	66.99 USD	70.26 USD	-3.29 USD
EURO (Currency, Forex)	1.2279 USD	1.2302 USD	-0.0023 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

 

Dear Sir or Madam,

The impending escalation of the trade conflict between the USA and China has the potential to place a lasting burden on the world economy. Now that the US government has imposed punitive tariffs on steel imports from China, Beijing has now imposed punitive tariffs of up to 25% on imports of 128 US products. The Chinese government has selected the selection because it will specifically target typical Trump rural voters, especially as it relates to agricultural products.

Nonetheless, during the Holy Week, prices for European CO2 emission allowances continued to rise sharply, even breaking through the € 14 level last Wednesday to close on Thursday with a further 5.3% weekly gain of € 13.26 per EUA,

It remains to be seen whether the nervous macroeconomic environment will be able to force a correction of the bullish price before the end of the compliance submission deadline on 30.04.2018.

 

(Average Quotes Exchange / OTC)
Instrument	2018-03-23	2018-03-16	Change
EUA (Spotmarket)	12.58 EUR	11.15 EUR	+1.43 EUR
EUA (December-2018-Future)	11.61 EUR	11.17 EUR	+1.44 EUR
CER (Spotmarket)	0.20 EUR	0.19 EUR	+0.01 EUR
ICE Brent Crude Oil (Benchmark Future)	69.71 USD	66.13 USD	+3.58 USD
EURO (Currency, Forex)	1.2357 USD	1.2289 USD	+0.0068 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

Dear Sir or Madam,

If we talked about a new seven-year high at EUR 11.50 in our last market news, we now have to report that actually already the 13-euro mark has been tested. After that, although it came to profit taking, the price has since found a level around the mark of 12.50 EUR.

Of course, looking at the details of this development, it is easy to conclude that the market is dominated by speculative traders who clearly bet on significantly rising prices. The bullish attitude was further fueled last week by news from European politics. For example, the International Energy Agency announced that global energy-related CO2 emissions rose again in 2017 for the first time after a three-year break. Strong economic growth boosted the use of fossil fuels, while energy efficiency measures seemed unpopular.

However, one of the decisive political statements with price-supporting effects was the statement from Great Britain that despite Brexit the cap-and-trade system will be favourably disposed and that the country will remain in the ETS at least until the end of the trading period.

French President Emmanuel Macron has also signaled on Thursday that he will continue to push for an EU carbon price floor, which also includes a border tariff for countries, that did not sign the Paris contract, despite the still very limited support that both ideas have so far from European partners.

Against this background, the auctions were literally stormed last week. However, many bidders did not make the move, which put significant pressure on the spot market. As a result, we saw sales of well over 30 million allowances a day and extreme price jumps.

The oil market also received a significant boost in the past week due to political news. The increase in prices was fueled by investors’ concern about a harsher US action against the big producing country and OPEC member Iran. On Friday had become known that US President Donald Trump will replace his previous security adviser McMaster by John Bolton, which brings a similar attitude with into the White House.

 

(Average Quotes Exchange / OTC)
Instrument	2018-03-23	2018-03-16	Change
EUA (Spotmarket)	12.58 EUR	11.15 EUR	+1.43 EUR
EUA (December-2018-Future)	11.61 EUR	11.17 EUR	+1.44 EUR
CER (Spotmarket)	0.20 EUR	0.19 EUR	+0.01 EUR
ICE Brent Crude Oil (Benchmark Future)	69.71 USD	66.13 USD	+3.58 USD
EURO (Currency, Forex)	1.2357 USD	1.2289 USD	+0.0068 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

 

 

 

 

 

 

 

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Advantag Services GmbH

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47608 Geldern

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Tel.: +49(0)2831.13482-20

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Mail: info@advantag.de

Web:  www.advantag.de

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Managing Director:

Raik Oliver Heinzelmann

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