Dear Ladies and Gentlemen,

Strong plus signs characterize the market trends last week. Compared to the US dollar, the euro reached the highest level since October last year, immediately before the election of Donald Trump as the President of the United States. But the initial Trump euphoria has come down noticeable. As even an impeachment is now open discussed, investors are increasingly losing confidence in the dollar.

The oil price also rose significantly in the last week. Saudi Arabia and Russia have already made progress with the extension of the production restrictions, and the market is also expecting approval by the OPEC meeting this week. This would mean that the limits on production volumes would be extended by March 2018, which could lead to a further, perhaps even significant price increase.

As a result of these trends, the carbon market has absorbed the large auction volumes of the past week with ease and even driven the market with auction results above the current spot price. With an increase of EUR 0.40, the course clearly broke the medium-term downward trend, but was still unable to overcome the five-euro mark. It is a well-known fact that such price jumps are always an incentive for profit taking, so it remains to be seen whether the upward trend will continue unabated this week.

 

(Average Quotes Exchange / OTC)
Instrument	2017-05-19	2017-05-12	Change
EUA (Spotmarket)	4.85 EUR	4.45 EUR	+0.40 EUR
EUA (December-2017-Future)	4.85 EUR	4.46 EUR	+0.39 EUR
CER (Spotmarket)	0.24 EUR	0.25 EUR	-0.01 EUR
ICE Brent Crude Oil (Benchmark Future)	53.68 USD	50.80 USD	+2.88 USD
EURO (Currency, Forex)	1.1208 USD	1.0934 USD	+0.0274 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 have 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. These 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 Ladies and Gentlemen,

The market for European pollution rights suffered last week under a bulging auction calendar, since on Wednesday the EEX received 4,857,000 EUA from Poland in addition to the auction. The interest in the fresh certificates was, however, very low. On Friday, Leipzig reported a cover ratio of only 1.43 – the lowest value so far this year.

In spite of all, the price on Friday rebounded at a low of EUR 4.29 and closed with 4.46 EUR significantly higher than expected. This week the regular auction of 4,269,500 EUA will take place at the London ICE, which means that only a little less certificates will be offered compared to the previous week. We will see whether there will be enough buying interest for this at all.

As the US science portal, Climate Central, recently reported, a CO2 content of more than 410 ppm was measured at the Mauna Loa measuring station in Hawaii for the first time in the history of data collection. According to scientists, there was such a high value last several million years ago. The measuring station in Hawaii is known for its stable measurement data. When the records were started there in 1958, the figure was only at 315.71 ppm – which was already significantly higher than the average 280 ppm in pre industrial time.

 

(Average Quotes Exchange / OTC)
Instrument	2017-05-12	2017-05-05	Change
EUA (Spotmarket)	4.45 EUR	4.57 EUR	-0.12 EUR
EUA (December-2017-Future)	4.46 EUR	4.58 EUR	-0.12 EUR
CER (Spotmarket)	0.25 EUR	0.24 EUR	+0.01 EUR
ICE Brent Crude Oil (Benchmark Future)	50.80 USD	49.24 USD	+1.56 USD
EURO (Currency, Forex)	1.0934 USD	1.0998 USD	-0.0064 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 have 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. These 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 Ladies and Gentlemen,

Trading in the CO2 market started with stronger pressure on the sales side in the past week. This negative trend continued in the following days and ended on Thursday in a 6-month low of 4.30 EUR. However, the market seems to have found its ground for moment, as the price subsequently rose again. On Friday, the course reached a peak of EUR 4.70, but had to accept then a correction because of profit taking.
At the same time, the oil price last week as well saw strong cuts to just over USD 47.00, but was also able to recover a little at the end of the week.
For a long time, biologists in general and environmentalists in particular bewailed a dramatic decline in insect populations, especially in areas with intensive agricultural use. The German Government has now responded to a request from the Greens, stating that the number of birds in Europe has also declined dramatically. For example, the number of breeding pairs in these areas in Europe has shrunk by 300 million pairs in the last 30 years, which corresponds to a drop of 57 percent. This immense decline is closely related to insect death. According to the Federal Government, the number of some species of insects had decreased by up to 90 percent, with the use of herbicides and insecticides being a “relevant factor of influence”.

 

(Average Quotes Exchange / OTC)
Instrument	2017-05-05	2017-04-28	Change
EUA (Spotmarket)	4.57 EUR	4.56 EUR	+0.01 EUR
EUA (December-2017-Future)	4.58 EUR	4.57 EUR	+0.01 EUR
CER (Spotmarket)	0.24 EUR	0.24 EUR	+0.01 EUR
ICE Brent Crude Oil (Benchmark Future)	49.24 USD	51.84 USD	-2.60 USD
EURO (Currency, Forex)	1.0998 USD	1.0896 USD	+0.0102 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 have 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. These 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 Ladies and Gentlemen,

US President Donald Trump, who is always good for a surprise, apparently wants to declare his point of view about the world climate agreement up to the middle of the month. During the election campaign Trump had announced the withdrawal of the United States from the Treaty of Paris. To this, SPIEGEL ONLINE has now reported that the Secretary of State for Energy, Rick Perry had spoken out against a withdrawal of his country from the Treaty. However, he wants to renegotiate it. According to the report, the Secretary spoke at a conference for new energies in New York and accused Germany of massive reproaches because it did not sufficiently reduce its greenhouse gas emissions. Perry said the US and China have made a major contribution to reducing climate-damaging emissions. France and Germany, on the other hand, did not do enough. Germany has announced the nuclear phase-out and a massive expansion of renewable energies. “But the fact is that their emissions have increased because they use more coal, and they use coal that is not a clean technology,” Perry criticized. How the US administration imagine a renegotiation of the already ratified and entered into force contract is, however, completely unclear.

Talking of coal – just on the so-called “Earth Day”, a day of action, which is celebrated every year on 22 April in more than 175 countries, the British energy industry has been able to forgo completely the use of coal for energy supply for 24 hours. The National Grid, understandably described this as a milestone. In the run-up to the Paris Climate Agreement, Britain announced that it would completely abandon coal as an energy source by 2025, and is in fact on the right track – also thanks to the carbon tax, which makes coal combustion more unattractive in comparison. In Scotland, coal has not been fired since 2016. In Germany, on the other hand, coal-fired power plants account for a very significant share of the energy supply at around 45 percent.

At the market for European pollution rights, the usual last-minute purchases to the end of the compliance period have been left out this year. As a result, both trade impulses and orientation were missing in the last days of April. Thereupon, the price moved sideways in an extremely narrow price range and finally settled between EUR 4.50 and EUR 4.60.

 

(Average Quotes Exchange / OTC)
Instrument	2017-04-28	2017-04-21	Change
EUA (Spotmarket)	4.56 EUR	4.59 EUR	-0.03 EUR
EUA (December-2017-Future)	4.57 EUR	4.60 EUR	-0.03 EUR
CER (Spotmarket)	0.24 EUR	0.25 EUR	-0.01 EUR
ICE Brent Crude Oil (Benchmark Future)	51.84 USD	51.93 USD	-0.09 USD
EURO (Currency, Forex)	1.0896 USD	1.0727 USD	+0.0169 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 have 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. These 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