Dec24/ Carbon Stable Near Five-Month Low; German Power Advances

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EU Carbon Stable Near Five-Month Low; German Power Advances
2010-12-24 12:55:14.148 GMT

By Mathew Carr
Dec. 24 (Bloomberg) -- European Union carbon dioxide
permits were stable near their lowest in almost five months as
demand from utilities was weak, said 70Watt Capital Management.
Allowances for December 2011 rose 1 cent to 14.09 euros
($18.50) a metric ton on the ICE Futures Europe exchange in
London. They were as low as 13.90 euros a ton earlier today, the
lowest intraday price since July 27, and have risen 7.2 percent
so far this year.
"Utility buying stopped," said Kris Voorspools, director
of 70Watt, a Luxembourg-based hedge fund that specializes in
trading spreads in energy and CO2 markets.
Generators will seek to wait for higher profit on power
sales before selling forward and buying carbon permits,
Voorspools said today by e-mail. German power for next year rose
1.1 percent to 51.45 euros a megawatt hour, according to data
from brokers. It's fallen 0.4 percent so far this year. The EU
carbon market is the world's largest greenhouse-gas reduction
program by traded volume.

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>

--Editors: Rob Verdonck, Stephen Cunningham

To contact the reporter on this story:
Mathew Carr in London at +44-20-7073-3531 or

To contact the editor responsible for this story:
Stephen Voss at +44-20-7073-3520 or