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EU carbon gains 5%

Prices of EU emission allowances (EUAs) rose by 5% today on a stronger euro and rising oil prices.

The December 2011 EUA contract trading on ICE Futures Europe finished up 32 cents (5%) at € 6.77 on thin volume of around 8.1 million tonnes of CO2.

The market opened unchanged at € 6.45. Prices fell to € 6.38 in morning trade and then started to rise, reaching € 6.89 in the late afternoon, an intraday peak.

EUA prices made gains on a stronger euro which rose on a successful outcome of a Spanish auction of obligations, along with stock prices.

Spain sold today around 6 billion euros worth of obligations compared with an expected maximum of 3.5 billion euros at a yield which was lower compared with the previous auction.

The euro against the dollar dropped to an 11-month low on Wednesday while EUAs hit a record low of € 6.30.

Meanwhile, carbon was pulled higher by stronger oil prices which rose on buying by investors after falling by 4.1% yesterday.

The December 2011 CER contract finished up 39 cents (10.1%) at € 4.26 on ICE Futures Europe.

On BlueNext in Paris, the EUA spot contract gained 34 cents (5.3%) to € 6.81.

Source: ICE Futures Europe, BlueNext, Reuters