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Carbon market summary for the week 18-24.08.2014
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www.virtuse.eu
CARBON MARKETS NEWSLETTER
26 AUGUST 2014
MARKET SUMMARY
EMISSIONS PRICE IS STABLE IN THE RANGE BETWEEN 6.25 AND 6.50 Emissions price remained on high levels during last week. Continuing the previous bullish trend, EUA Dec14 reached the highest
price since March 2014. Closely after opening the Wednesday session it spiked to 6.51 and then slipped on profit taking. After
breaking the resistance level at 6.27 the uptrend seemed to be speculative and based on technical bullish indicators. Energy
spreads were narrow, auctions werent cleared above spot, but nevertheless we saw a new high on the market. From this point
of view the pull back is natural. Current technical indicators are showing a trend reversal. Market fell to a new low at 6.25 and
wasnt able to reach a new high above 6.51. If the price gets down to 6.24 from current level, a strong trend reversal pattern
will come in sight.
German Electricity contract
Cal15 has slightly recovered
from the fall on previous Mon-
day session. Currently the con-
tract is traded at 35.65 /
MWh. UK gas NBP Dec14 is at
62.38 p/therm. Coal API2 front
year contract is flat comparing
to the previous week and cur-
rently is quoted at 79.60 $/t.
PRICE DRIVERS
EUAs dec14 traded on
26.08.2014 at 10:00
at 6.29/t
CERs dec14 are at 0.17/t
Our outlook for this week is
neutral or even slightly nega-
tive. After very bearish devel-
opment in energy spreads,
they picked up a little during
the last week and on Monday
session. We also base our
view on trend reversal chart
pattern and on results of
Monday auction which
cleared at least 4 cents below
the spot.
HIGHLIGHTS OF THE WEEK