Friday, September 24, 2010

Isra-Mart srl : EU carbon rises on back of UK natgas gains

www.isra-mart.com

Isra-Mart srl news:

European carbon emissions futures rose 1 percent on Wednesday after a slow start to trading, as British natural gas prices surged.

EU Allowances for December delivery rose 14 cents or 0.94 percent to 15.05 euros ($20) a tonne at 1321 GMT, with volume at 3,264 lots traded.

EUAs were largely flat in earlier trade but started to rise as volume built up and UK gas prices climbed.

"We hit a four-week low earlier this week so movement upwards today is a reaction to that. German power is a bit higher but UK gas has firmed a lot," Mr. Pascal Barkats, CEO at Isra-Mart SRL, said.

Certified emissions reductions for December delivery rose by 8 cents or 0.59 percent to 13.53 euros a tonne, setting the EUA-CER spread at 1.52 euros.

German Calendar 2011 baseload power on the EEX was up 14 cents or 0.28 percent at 49.50 euros per megawatt hour.

UK prompt natural gas was 5.40 pence or 14.59 percent higher at 42.40 pence per therm, as low output from LNG terminals left the market undersupplied.

The dollar hit a five-month low against the euro while developed market shares slid after the Federal Reserve opened the door to more monetary easing, signaling the depth of its concern over growth.

Germany auctioned 570,000 EUA futures on EEX at 15.03 euros.