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EUA prices rise by almost 6%

Prices of EU carbon allowances (EUAs) for December delivery rose by almost 6% today on stronger German power.

The EUA futures contract for December 2012 delivery finished up 42 cents (5.9%) at € 7.53 on the London-based exchange ICE Futures Europe.

The EUA contract rose to € 7.65 in afternoon trade, the highest level since December 29, after falling to € 7 in the morning.

Carbon was tracking stronger German power prices which made gains on lower wind power output in German and expectations of colder weather in Europe.

German 2013 baseload power trading on the European Energy Exchange (EEX) finished up 54 cents at € 51.25 per MWh.

Meanwhile, EUA prices had support from British natural gas prices which firmed on stronger crude oil prices.

What also should be noted is that carbon moved higher despite expectations of increased supply after this week's auctions.

Greece is planning to sell 1 million spot EUAs on Wednesday while Lithuania will auction 850,000 EUAs on Thursday. Germany auctioned today 300,000 spot EUAs at € 6.90 and will sell 645,000 EUA futures tomorrow.

The CER futures contract for December 2012 delivery finished up 25 cents (6.8%) at € 3.90 in London.

On BlueNext in Paris, the EUA spot contract gained 40 cents (5.8%) to € 7.27.

Source: ICE Futures Europe, BlueNext, EEX, Reuters