Stopped? other reasons for the jump late yest?
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EU Carbon Rebounds From Three-Month Low as German Power Rises
2010-07-27 17:33:52.480 GMT
By Mathew Carr
July 27 (Bloomberg) -- Carbon allowances in the European
Union emissions-trading system, the world's biggest, rebounded
from their lowest price in more than three months as German
power advanced.
EU permits for December 2010 rose 19 cents, or 1.4 percent,
to 13.72 euros ($17.84) a metric ton on London's European
Climate Exchange as of 5:47 p.m. They were earlier at 13.34
euros, the lowest price since April 7.
German baseload power for next year, a European benchmark,
gained 10 cents, or 0.2 percent, to 49.25 euros a megawatt-hour,
according to broker prices on Bloomberg. It earlier fell as much
as 0.4 percent.
Higher power prices can boost the incentive to sell
electricity forward, stimulating demand for emission permits.
Rising carbon prices may force some traders to buy permits to
close short positions as those bets become less and less
profitable. Risk managers in utilities, manufacturers and banks
generally set limits on losses that traders can make.
For Related News and Information:
Emission market news NI ENVMARKET <GO>
Today's top energy stories ETOP <GO>
European power-markets home page EPWR <GO>
--Editor: Mike Anderson.
To contact the reporter on this story:
Mathew Carr in London at +44-20-7073-3531 or
m.carr@bloomberg.net
To contact the editor responsible for this story:
Stephen Voss at +44-20-7073-3520 or sev@bloomberg.net
