Yest/EU CO2 Rises After Breaking Technical Level as Power Gains

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EU CO2 Rises After Breaking Technical Level as Power Gains
2011-01-06 12:22:47.872 GMT

By Catherine Airlie
Jan. 6 (Bloomberg) -- European Union carbon permits rose
after breaking through a technical-resistance level, while
German power contracts gained.
EU permits for December increased by 7 cents, or 0.5
percent, to 14.60 euros ($19.12) a metric ton as of 11:30 a.m.
today on London's ICE Futures Europe exchange. German power for
delivery next year rose 0.6 percent to 52.70 euros a megawatt-
hour, according to broker data compiled by Bloomberg. Higher
prices can strengthen the incentive to sell electricity forward,
feeding demand for CO2 permits.
Traders analyze changes in supply and demand and also watch
for patterns in daily price fluctuations, such as moving
averages and resistance levels, for clues to the future
direction of prices.
Emissions permits may "test the next resistance level at
14.68 euros a ton," Carine Hemery, a Paris-based analyst at
Orbeo, the carbon venture of Societe Generale SA and Rhodia SA,
wrote in a report e-mailed today. The contract closed above the
key level of 14.50 euros a ton yesterday after prices increased
in the last hour of trading, Hemery said, recommending that
investors buy the contracts.

For Related News and Information:
Top renewable energy, power stories: GREEN <GO>, PTOP <GO>
Bloomberg glossary of emissions terminology: IDOC 2059757 <GO>
Emissions menu, prices: EMIS <GO>, EMIT <GO>

--Editors: Bruce Stanley, Mike Anderson

To contact the reporter on this story:
Catherine Airlie at +44-20-7073-3308 or

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