Carbon Market Weekly 27-31 October

In the European carbon market the week started with a bearish session on Monday (Oct. 27),  followed by another drop on Tuesday  which triggered further automatic selling. According to analysis by Reuters PointCarbon, the downward moves were mainly due to temporary profit taking, as market participants locked in gains from the previous week. EUAs managed to recover on Wednesday, posting a significant rebound amid an absence of a EUA auction and stronger energy prices. Utility hedging demand was likely the main reason behind the price recovery, due to high traded volumes and a rise in open interest for the Dec-17 contract, Reuters analysts said. Prices consolidated due to technical resistance on Thursday, before they eased slightly on Friday amid weakness in forward fuel and power prices. The EUA Dec-14 contract closed almost flat on Friday at €6.35/t, losing around 0.9 percent (€0.06/t) week on week.

In the UN-backed CDM market, the front-year CERs closed at €0.1/t, up 42 percent (€0.03/t) respect to the previous Friday’s finish.

 

(Market analysis and data by Thompson Reuters PointCarbon, our data visualization using Tableau Public)