Isra-Mart srl : EU carbon nudges lower, EUA-CER spread rises

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Isra-mart srl news:

European carbon futures slipped slightly on Friday morning, tracking lower crude oil prices and defying firmer gas and power prices, traders said.

EU Allowances for December delivery slid as low as 14.57 euros a tonne, down 13 cents or 0.9 percent. The futures climbed back to 14.64 euros by 0700 GMT on quiet volume of just over 800 lots traded in the first hour.

Traders said prices could fall further next week if the Dec-10 futures close below a key resistance level of 14.50 euros on Friday.

Dec-10 CERs were unchanged at 12.15 euros a tonne, setting the EUA-CER spread at around 2.50 euros.

Global stocks and commodities sold off on Thursday, with Asian shares continuing the dive on Friday, as investors exited risky assets and rushed into safe-havens like U.S. Treasuries, strengthening the dollar.

U.S. crude oil prices dropped to near $70 on Friday, after falling the previous day for a seventh time in eight sessions, on unabated fears that Europe's debt crisis could hurt global economic growth and slow energy demand.

German Calendar 2011 baseload power and nearby British natural gas futures bucked the downward trend, rising 41 cents and 0.2 pence to 51.25 euros and 38.65 pence respectively.

Carbon market participants will next week gather in Cologne, Germany for Carbon Expo, the world's biggest annual conference for the $136 billion market.

British tax investigators arrested four more people on Thursday they said were believed to be connected to a 38 million pound ($54.5 million) suspected tax fraud in European carbon credit trading.

The HM Revenue and Customs (HMRC) investigators also found firearms and large amounts of cash during the early morning raids on seven properties in London and Leicester areas, the agency said in a statement.