The Carbon Market 19.01.2016

The ICE exchange from London currently trades as follows:

• EUA spot:  € 6.79
• EUA Dec ’15 futures: € 6.85
• CER Dec ’15 futures: € 0.43
• Brent Crude spot: $ 29.28
• German Power Dec ’16: € 23,80

The European CO2 Market EU ETS

In step with the fall in oil prices and other major indexes also the CO2 price has continued its surprisingly violent downtrend and dropped sharply again in the second week of January. Falling energy prices actually suggest that the consumption of energy and thus also emissions would rise, which in turn leads to a price support for carbon certificates. But in recent weeks, we experienced a situation in which falling energy values and lower demand coincided. Among other things, the much too mild temperatures in Europe have helped to make it for a few big companies not too difficult to sell current long positions and take profits.

Now however, it is impossible to predict how long this game might still continue.  The market is technically already significantly oversold and once the downward movement stops, this likely means the starting signal for the bulls in the market.

Source: Advantag Brokerage Gmbh., Geldern/Germany