Carbon market snapshot
Profit-taking set in on Wednesday, after a prolonged rally in the CO2 markets, but steady buying support around €15.00/tCO2e stopped the EUA Year 2010 contract from slipping too far.
Heavy selling pushed EUAs down in the morning, but these offers were soon absorbed by bids left at €15.00/tCO2e. Sources thought natural buyers (mainly utilities) had been on the bid-side, along with some speculators. Most said the downward move was expected, as length has been building up in the market, and current prices make it tempting to cash in. Macroeconomic concerns over the Greek financial crisis and a downgraded credit rating for Spain had added to the downward push. Yet the fact that EUAs had recovered intra-day, despite all this, was a bullish indicator for the coming days, some traders said.
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