2 cents off five month low folks? what's the best reason why? contract true up? oversupply? comments our way
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EU Carbon Drops to Five-Week Low as Natural Gas, Power Decline
2010-12-17 08:31:55.148 GMT
By Ewa Krukowska and Mathew Carr
Dec. 17 (Bloomberg) -- European Union carbon permits
declined to a more than five-week low as natural-gas and power
prices weakened, damping demand for emission allowances.
EU allowances for December 2011 dropped as much as 0.8
percent to 14.45 euros, the lowest level since Nov. 9. They
traded at 14.50 euros as of 8:05 a.m. on London's ICE Futures
Europe exchange, extending this month's loss to 3.5 percent.
The contract for delivery this month fell 0.3 percent to
14.22 euros.
U.K. natural gas for delivery next month weakened 0.4
percent to 58.25 pence a therm, according to broker prices
compiled by Bloomberg. Lower gas prices may prompt some power
generators to switch to the fuel, which requires half as many
carbon permits as coal.
German baseload power for next month dropped 0.4 percent to
53 euros a megawatt-hour, according to broker prices compiled by
Bloomberg. Lower prices can reduce the incentive to sell
electricity forward, curbing demand for CO2 permits.
For Related News and Information:
U.K. power-market stories TNI UK PWRMARKET <GO>
Today's top energy news ETOP <GO>
U.K. electricity prices ELEU <GO>
Natural-gas markets menu NATG <GO>
--Editors: Alex Devine, John Buckley.
To contact the reporter on this story:
Ewa Krukowska in Brussels at +32-2-237-4331 or
ekrukowska@bloomberg.net
To contact the editor responsible for this story:
Stephen Voss at +44-20-7073-3520 or
sev@bloomberg.net
