By Mathew Carr
Nov. 1 (Bloomberg) -- European Union carbon-dioxide
allowances extended last month's 5.1 percent drop as German
power traded near its cheapest price since April 8.
EU permits for December fell as much as 0.7 percent to the
lowest price since Aug. 19 and traded down 5 cents at 14.58
euros ($20.30) a metric ton as of 9:50 a.m. on London's European
Climate Exchange. German power for settlement next year advanced
for its first session in five, rising 0.2 percent to 47.45 euros
a megawatt-hour, according to broker data compiled by Bloomberg.
Carbon's decline of 5.1 percent in October after two months
of gains will extend into this week, Carine Hemery, an analyst
for Orbeo in Paris, said Oct. 29 in a phone interview. Orbeo is
the carbon-trading venture of Rhodia SA and Societe Generale SA.
Coal prices are near their highest in a year, curbing use
of the fuel that requires twice as many carbon permits for
utilities compared with cleaner-burning gas. U.K. gas for next
summer has fallen 8.3 percent since June 30, making that a more
profitable fuel.
The 50-day moving average price for the December contract in the EU carbon market, the world's biggest, crossed the 20-day
average on Oct. 28, a technical indicator that helped drive
prices lower last week, Hemery said. "It was a strong bearish
sign."
When a similar crossing occurred on July 7, carbon prices
dropped as low as 13.34 euros on July 27. Fundamentals and
technical indicators are signaling lower prices, Hemery said.
For Related News and Information:
Top Power Stories: PTOP <GO>
Emissions-trading stories: NI ENVMARKET BN <GO>
Today's top energy news: ETOP <GO>
European power-markets home page: EPWR <GO>
--Editors: Mike Anderson, Alex Devine.
To contact the reporter on this story:
Mathew Carr in London at +44-20-7073-3531 or
m.carr@bloomberg.net
