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EUAs gain almost 4%

Prices of EU carbon allowances (EUAs) for December delivery gained almost 4% on Tuesday, tracking stronger oil prices.

The EUA futures contract for December 2012 delivery finished up 28 cents (3,6%) at € 8.05 on ICE Futures Europe in London.

The EUA contract fell to € 7.67 in morning trade, down 10 cents on yesterday’s close, before rising to € 8.08 in the afternoon, an intraday high.

Carbon was tracking stronger oil prices which made gains on concerns over supplies of the commodity from Iran and hopes for resolving the Greek debt crisis.

Front-month Brent crude oil rose to $ 113.90 a barrel by midday on ICE, up $ 3.15 on yesterday’s close, but this huge jump was due to a mistake made in electronic trading.

Meanwhile, EUAs moved higher despite weaker German power prices which dropped on profit-taking after rising to a four-week high yesterday.

The 2013 baseload contract trading on the European Energy Exchange (EEX) finished down 68 cents at € 52.05 per MWh.

EUAs climbed to € 8.29 on Monday, the highest level since December 23, before closing down 5.4% amid weaker power prices.

Germany sold today in a weekly auction on EEX 300,000 spot EUAs at € 7.66, 20 cents lower than last week.

The futures CER contract for December 2012 delivery finished up 15 cents (4%) at € 3.92. 

On BlueNext in Paris, the EUA spot contract gained 30 cents (4%) to € 7.86

Source: ICE Futures Europe, BlueNext, EEX, Reuters