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EUA prices edge lower

Prices of EU carbon allowances (EUAs) closed a shade lower lower on Friday after hitting a three-day high.

The EUA futures contract for December 2011 delivery finished up 2 cents (0.3%) at € 6.75 on ICE Futures Europe in London.

The EUA contract opened at € 6.80, up 3 cents. Prices fell to € 6.50 in morning trade before rising to € 7.05 in the afternoon, the highest level since December 13.

EUA prices made gains as traders were closing short positions ahead of the December 2011 EUA contract expiry on Monday, December 19.

Open interest on the December 2011 EUA contract fell to around 166.3 million on Wednesday from around 187.5 million on Monday.

Only around 6.7 million tonnes of CO2 were traded on the soon-to-be-expired contract compared with around 11.1 million on the December 2012 EUA contract.

Carbon prices traded in a range of € 6.30-8.32 this week, and their floor hit on Wednesday was the lowest level ever.  

EUAs lost almost 14% on the week, mainly on a weaker euro and falling oil prices.

The December 2011 CER contract finished up 2 cents (0.5%) at € 4.28 in London.

On BlueNext in Paris, the EUA spot contract lost 1 cent to € 6.80.

Source: ICE Futures Europe, BlueNext, EEX, Reuters