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EUA prices hit all-time low

Prices of EU carbon allowances (EUAs) plunged to an all-time low of € 6.30 on Wednesday in afternoon trade before finishing down 7.5%.  

The December 2011 EUA contract trading on ICE Futures Europe ended down 53 cents (7.5%) at € 6.50 on a relatively high volume of around 15.8 million tonnes of CO2.

The market opened at € 6.90, down 13 cents. The EUA contract rose to € 7.03 in morning trade and then started to fall to reach an all-time low of € 6.30 in late afternoon trade.

EUA prices dropped on a weaker euro – the euro against the dollar fell below $ 1.30 on Wednesday, reaching an 11-month low, after an auction of Italian bonds.

Italy sold today 3 billion euros worth of 5-year government bonds at a yield of 6.47%, the highest level in the euro zone era.

Meanwhile, oil prices slid after the Organization of the Petroleum Exporting Countries (OPEC) promised to maintain a high level of oil output. 

Brent crude oil for January delivery fell to $ 105.54 a barrel in afternoon trade on ICE, down 3.6% on yesterday’s close.

EUAs fell for the third consecutive day, losing around 17% since last Friday. Carbon hit the previous record low of € 6.77 on December 6.

The December 2011 CER contract finished down 62 cents (14%) at € 3.80 on ICE, an all-time low.

On BlueNext in Paris, the EUA spot contract lost 76 cents (10.8%) to € 6.31.

Source: ICE Futures Europe, BlueNext, Reuters