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.

Wednesday

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

2) European carbon prices in #EUETS plummeted most since April 2013 as financial investors investors pulled nearly $86 million from the largest ETF fund that invests in emissions markets. /via @MathisWilliam https://t.co/2Rw4qZ8bQs

— Ewa Krukowska (@E_Krukowska) March 1, 2022

The bonfire of the EUAs continues…

Aggressive selling wipes another 10% off prices, with benchmark falling to 3-mth low of €61. Dec22s have now given back €37.50 or 38% since last month's record €98.49

Experts say fundamental bullish case remains sound.#OCTT #EUETS $KRBN

— 🇺🇦Mike Szabo🇺🇦 (@MikeSzaboCP) March 2, 2022

EU Carbon Plunges to 62 euros …now down more than 40%

Does that make it a screaming buy, especially if there is a gas shortage? Trump is off the table?

Comments my way

#euets #eua #octt #calietshttps://t.co/6IAGJ74zQ7

— Mathew Carr (@carrzee) March 2, 2022

Comments to mathew@carrzee.net