Pointcarbon: EUAs surge to new two-year highs

European carbon prices surged to fresh two year highs Friday morning after oil prices jumped in overnight trade to lead the energy complex higher. By 13.00 CET, the 2008 EUA contract was trading at €27.35, up €0.85 on yesterday’s close.
The most actively traded contract opened at €17.20 and then dipped to a low of €27.00 in the morning before climbing back to a high of €27.45 just before midday.
Crude oil prices surprised the carbon market in the morning after rallying around $8/bbl in overnight trade.

The July Brent crude oil contract was trading around €129.40/bbl by midday, as the market finally reacted to last Wednesday’s weekly US crude oil stock statistics which revealed a 5 million draw in crude stocks.

Gas, German power, and coal prices also rose on the back of the rally in oil.

Meanwhile, the CER market continued to extend the recent rally with the 2008 contract heard trading as high as €20.45, up €0.85 on yesterday’s close.

Concerns over thinning supply of the UN credits has now pushed the price of the 2008 contract up €2.45 since the start of the month, and tightened the spread to the 2008 EUA contract to under €7.00 for the first time this week since the end of March.

Meanwhile, the CER 2009 contract was trading around a €1 lower than the 2008 CER Friday morning compared to just €0.35 lower at the start of the month.

The CER strip, which is the accumulated value of all the contracts between 2008 and 2012, was heard trading at €19.25.