This newsletter was published 28.08.2024 at 18:04pm CEST

The current prices on the European carbon market are as follows:

EUA prices have edged slightly lower, which is unexpected given the rise in other energy markets since last Wednesday. The latest Commitments of Traders report shows a net short position decrease of around 2 million EUA to 4.8 million EUA. Investment funds have been steadily flattening their positions for weeks, anticipating peak compliance buying ahead of the September allowance surrender deadline. Historically, September has trended upward, with positive returns in 7 of the past 10 years. Despite recent weakness, it seems EUAs were sold aggressively, but buyers absorbed the volumes at a discount, suggesting potential strength in the coming weeks.

German power prices are up by 1.93 EUR since last week, with the front-year contract trading at 97.00 EUR/MWh. API2 coal prices are up by 2.25 USD since last week, with the Cal-25 contract trading at 127.25 USD/tonne. Front-year gas prices are up by 0.600 EUR since last week, with the TTF Cal-25 trading at 40.600 EUR/MWh. EUR/USD is up by 30 points since last week and is currently trading at 1.1130.

Price development of EUA Dec2024 futures contract