Carbon Market Weekly 8-12 December

European carbon market was characterized by a lack of fresh price drivers last week. Market participants were unsure about the further direction after having experienced downwards corrections since end of November, partly due to weak energy markets and pressure by the losses in crude oil prices. The EUA Dec-14 closed almost flat on Friday at €6.75/t, down €0.01/t (-0.15%) from the previous Friday’s finish.

This was the last week of trading for the Dec-14 contract before its expiry on 15 December. According to Reuters PointCarbon, 34.5 million Dec-15 allowances changed hands on ICE, compared to a 30-day moving average for traded volume of 8.4 million Dec-15 allowances. Traders mentioned the expiry of option contracts that caused a strategic push to the downside and triggered high volumes, Reuters PointCarbon analysis reports. Analysts foresee an increasing number of traders will likely abstain from opening new positions ahead of the holidays, and assume technical analysis to guide the EUA Dec-15 contract towards the end of the year.

In the UN-backed CDM market, the CER contract for December 2014 closed at €0.50/t, losing €0.08/t (-13.79%) week-on-week.

 

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