Isramart : EU carbon soften on weak energy, tumbling equities

Isramart news:
LONDON (Reuters) - European carbon emissions futures declined on Friday, extending the previous session's losses, as weak energy prices and tumbling equities offered little support.

The benchmark contract for EU Allowances fell 10 cents or 0.75 percent to 13.15 euros ($18.68) a tonne at 0809 GMT, after declining to an intra-day low of 13.05 euros in the first hour of trade.

"Everything is weaker -- power, oil and equities. Following the Obama announcement, there is neither fundamental nor political support," an emissions trader said.

Proposals by U.S. President Barack Obama to impose new restrictions on banks sent Asian stock markets and commodities tumbling on Friday.

Weak German power and British natural gas prices have also dulled carbon permit demand for utilities.

"I cannot rule out that EUAs won't fall further today," the trader said.

U.S. oil fell on Friday to one-month lows below $76 a barrel, while German Calendar 2011 baseload power on the EEX fell 0.97 percent to 49.15 euros per megawatt hour.

British natural gas for February delivery was at 34.40 pence per therm.

Added to that this week, hopes for stronger world action in 2010 to curb climate change have dimmed after the U.S. Democrats lost a key Senate seat to a Republican opposed to capping emissions, experts said on Wednesday.

U.N. climate talks in Mexico in November will be undermined if the United States has not set caps on carbon emissions.

U.N.-backed certified emissions reductions were slow to trade.