EU Carbon Drops 10% Further; California Fell Too, Earlier; Plus Engie (4)

Engie EnergyScan: The carbon market recorded its deepest daily fall ever on Tuesday as speculators massively unwound their positions to avoid exposure and cover for the soaring margin calls of the volatile fuels and power markets, while Russian holders sold their allowances by fear of seeing their access to the registry and markets removed. There were also rumors of compliance players selling part of their just-received free allowances, possibly anticipating the worst-case scenario which would be materialized by strong industrial demand destruction resulting from the sudden stop of Russian gas flows, sky-rocketing energy prices and economic fall-out of the conflict. The impressive sell-off drove the EUA Dec.22 as low as 66.00€/t, with the downward move accelerating in the afternoon as the benchmark contract broke several technical supports. The EUA Dec.22 eventually closed at 68.85€/t, -13.36€/t (-16.3%) from Monday’s settlement.


Then dropped even lower before rebounding to about 63 (euros / ton)

Comments to

Leave a Reply