EU CO2 prices remain high but are tempering

EU CO2 Prices are tempering a bit last week and this week from € 26,5 to € 26 because of the downwards pressure on crude oil, gas and coal, traders say. In the mean time Deutsche Bank is warning for a short term peak of € 100, when power companies seek supply for compliance, while liquidity is low in the Summer. We believe that power companies still can make that switch from gas to coal in Summer, when gas prices are at its lowest. Though demand and supply sets the price, we want to underline that compliance seekers use more the long term market perspective to avoid such price spikes; also to avoid power price peak.