Weekly EU Emissions Trading System Allowances Price Report

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Credit: Fincantieri)

EU Allowances (EUAs) continued their retreat from a mid-week five-week high to record a 3% weekly loss, even as the August halving of auction supply looms, says an article published on Engine.

Reflecting a gradual weakening

Dec-23 EUAs dropped from their €90.91 open within the first few minutes but quickly stabilised near €90 before the day’s auction.

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Germany’s sale cleared at a hefty €0.46 discount to the prevailing market, similar to the previous day’s sale and reflecting a gradual weakening of auction clearance spreads throughout the week.

Benchmark contract

Bid coverage was its highest all week, however, at 1.94, only slightly below the 2.01 year-to-date average. But secondary prices dropped in the wake of the sale, with the benchmark December contract reaching a low of €88.15 in the early afternoon before levelling off.

The front-year EUA futures eventually settled at €88.68, down 2.6% on the day and 3% compared to last Friday’s settlement. Volume was a sparse 18.3 million on the Dec-23s with a further 5.3 million changing hands on ICE’s other EUA contracts.

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Source – Engine

 

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