Dear Sir or Madam,

OPEC tried to cut production to stabilize prices at the end of last week, but failed in negotiations with Russia. Originally, the daily production limits were to be reduced by a further 1.5 million barrels.

The issue of the corona virus currently dominates the financial and raw materials markets clearly, which is why the oil cartel considered this measure to be necessary. From OPEC’s point of view, it made more sense to extract a little less oil, but to realize more yields due to the rising prices.

As of Friday, Brent Crude Oil lost a good $ 5.00 and further negative reports regarding the European corona virus over the weekend caused a veritable crash on the market this morning. The oil price declined a good 30% and was just in the low at just over USD 31.

The fact that the oil price repeats itself quickly depends not least on signals from Russia, whether they are still giving in to support market prices. Russia is by far the largest oil supplier for Germany.

The German DAX index also lost more than 7% in early trading, while gold and the euro, on the other hand, benefit from the current market situation.

The prices for European CO2 emission allowances also fell significantly this morning by more than 3%, which is, however, significantly less than could be expected in relation to the oil crash. With a current price of around EUR 22.50 per EUA, the price is not far from the 6-month low of EUR 22.26 on October 9, 2019.

In the coming days, the nervousness of the financial and commodity markets will remain price-setting due to the fear of a recession regarding emission rights.

(Average Quotes Exchange / OTC)
Instrument	28/02/2020	06/03/2020	Change
EUA (Spotmarket)	23.55 EUR	23.40 EUR	-0.15 EUR
EUA (December-2019-Future)	23.61 EUR	23.42 EUR	-0.19 EUR
CER (Spotmarket)	0.26 EUR	0.29 EUR	+0.03 EUR
ICE Brent Crude Oil (Benchmark Future)	50.06 USD	45.46 USD	-4.60 USD
EURO (Currency, Forex)	1.1026 USD	1.1284 USD	+0.0258 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

Dear Sir or Madam,

The general hysteria with regard to the corona virus has not only continued to affect the financial and raw material markets, but meanwhile also large parts of the country in Germany. Not only did the DAX dip to 11,725 ​​in the past week, numerous foods such as pasta, flour and yeast also disappeared from supermarket shelves in western Germany.

There are currently just under 90,000 registered infections worldwide, of which 80,000 are in China – a country with 1.4 billion inhabitants. In Germany there are not even 200 cases with 82 million inhabitants, but there are already end times in many of them – the market reactions and the run to the supermarkets cannot be explained otherwise.

From a pragmatic point of view, however, two points can be made: on the one hand, it is an interesting test run to see how long a serious pandemic with a high mortality rate could be contained and, on the other hand, a stress test for banks and the economy.

At the moment, it appears that both the spread of Covod-19 and a little more reason seem to be returning to the markets, as the first counter-reaction appears to be emerging in the financial markets as well as in the commodity and energy markets.

This morning the EUAs can be seen above the 24 Euro mark again. If both Corona and the collective panic do not spread further, there would be a corresponding upward potential.

(Average Quotes Exchange / OTC)
Instrument	21/02/2020	28/02/2020	Change
EUA (Spotmarket)	25.55 EUR	23.55 EUR	+2.00 EUR
EUA (December-2019-Future)	25.61 EUR	23.61 EUR	+2.00 EUR
CER (Spotmarket)	0.24 EUR	0.26 EUR	+0.02 EUR
ICE Brent Crude Oil (Benchmark Future)	58.44 USD	50.06 USD	-8.38 USD
EURO (Currency, Forex)	1.0848 USD	1.1026 USD	+0.0178 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

Dear Sir or Madam,

in the north of Germany, the hurricane “Sabine”, has weakened and is now moving further south. As a result, some 20,000 households in Bavaria were cut off from the power grid this morning. Initial reports from the north and centre of Germany speak of injured people, destroyed houses and cars, closed motorways and massive disruption to rail and air traffic. Apparently, the highest wind speed of 177 km/h was measured on the Feldberg. Also, from England, Scotland and the Netherlands, where the hurricane was given the name “Chiara”, massive damages are reported. And the storm will probably continue to keep Europe in suspense in the coming days, causing considerable disruption with wind speeds of up to 150 km/h and heavy rain and snowfall.

At about the same time, the Argentinean Antarctic research station Esperanzan reports the highest temperature ever measured, at 18.3 degrees Celsius. This significantly exceeds the previous temperature record of 17.5 degrees from 2015. The melting of glaciers and ice sheets in the Antarctic as a result of global warming is being watched with concern by scientists, as it is a major factor in the rise of sea levels worldwide.

A look at the price of CO2 emission rights shows a further decline in the past trading week. Weak economic data from Europe and significantly weaker demand from China initially pushed the price of crude oil further down for the week. Although news of a possible cutback in production volumes by the OPEC+ countries initially provided a short-term recovery, the uninterrupted spread of the corona virus is a significant burden on the market.

The price of European Pollution Rights followed the price of Crude Oil last week in a conspicuous manner and starts the new trading week weakened once again.

(Average Quotes Exchange / OTC)
Instrument	31/01/2020	07/02/2020	Change
EUA (Spotmarket)	23.81 EUR	23.28 EUR	-0.53 EUR
EUA (December-2019-Future)	23.88 EUR	23.34 EUR	-0.54 EUR
CER (Spotmarket)	0.22 EUR	0.21 EUR	-0.01 EUR
ICE Brent Crude Oil (Benchmark Future)	56.62 USD	54.50 USD	-2.12 USD
EURO (Currency, Forex)	1.1090 USD	1.0944 USD	-0.0146 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