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EUAs finish unchanged

EU carbon allowances (EUAs) finished unchanged on Wednesday after falling to a three-week low in afternoon trade.

The December 2012 EUA contract fell to € 6.38 in afternoon trade on ICE, the lowest level since December 14 when it hit € 6.30, after rising to € 7.23 in morning trade. However, carbon finished at € 6.60, matching yesterday’s close.

EUA prices were tracking weaker German power which moved lower on warmer-than-expected weather in Europe and lower demand for spot power. 

German 2013 baseload power fell to € 52 per MWh in morning trade on the European Energy Exchange (EEX) but firmed to € 52.31 per MWh at the close.

EUA prices were later driven higher by stronger oil prices – Brent crude oil for February delivery gained almost $ 2 to $ 115 a barrel in afternoon trade on ICE.

Oil prices rose to the highest level since mid-November on possible disruptions in oil supplies from Iran and the positive economic data from Germany, the US, and China.

Germany sold this afternoon in the first auction this year on EEX a total of 645,000 EUA futures at € 6.40.

The volume of December EUAs for December delivery which are sold weekly by the German government was increased by 75,0000 this year.

The December 2012 CER contract dropped to € 3.79 in London, an all-time low, on worries about over-supply.

Source: ICE Futures Europe, BlueNext, EEX