EU carbon prices inch down on financial selling

Wed Sep 2, 2009 1:25pm IST

* EUAs soften with financials playing technical game

* Traders look to macro-economic news for direction

LONDON, Sept 2 (Reuters) - European carbon emissions futures softened slightly on Wednesday amid very low volume, with financial players selling at a resistance level of 14.80 euros a tonne, traders said.

EU Allowances (EUAs) CFI2Zc1 were down 3 cents or 0.20 percent at 14.76 euros a tonne at 0715 GMT, with volume at 370 lots.

"Volume is dull. The market is playing a technical game expecting global macro news. As for the power side, gas is cheaper than coal for the next year so I don't even open my gas and power prices anymore," an emissions trader said.

Traders said utilities were absent from the market and financial players were selling EUAs to make profit when levels reached 14.80 euros.

U.S. oil CLc1 edged above $68 a barrel, after industry data showed a sharp fall in U.S. crude stocks, boosting hopes of a demand rebound in the world's top energy user. [O/R]

Traders said the market will be watching U.S. economic data due later -- August unemployment figures and July factory orders -- for signs of the U.S. economy's gradual pace of recovery.

U.N.-backed certified emissions reductions (CERs) CEREZc1 were slow to trade. For tables related to carbon emissions and price forecasts, see [CO2/POLL]

To see a factbox on trading schemes around the world, click here: [ID:nLC685579].

To see European industry emissions data, click on [ID:nLF156858].

(Reporting by Nina Chestney; Editing by Keiron Henderson)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

India-WTO Row

REUTERS SHOWCASE

Market Eye

Market Eye

Nifty falls most in nearly 3-1/2 weeks; Sensex down over 400 points  Full Article 

Factory Activity

Factory Activity

Factories post fastest growth for 17 months in July  Full Article 

Paying for Bail

Paying for Bail

Jailed Subrata Roy gets office to negotiate hotel sales.  Full Article 

Rupee Dips

Rupee Dips

Rupee posts biggest weekly loss since record lows in August.  Full Article 

Reviving Infosys

Reviving Infosys

CEO Sikka says to improve business with new growth avenues  Full Article 

Outlook Slashed

Outlook Slashed

ArcelorMittal cuts outlook as ore prices hit mining  Full Article 

Re-gaining Momentum

Re-gaining Momentum

China, Asian factory growth gathers pace; Europe falters  Full Article 

Factory Lockout

Factory Lockout

Pfizer says threats to managers force staff lockout at Mumbai factory .  Full Article 

Gold Smuggling

Gold Smuggling

In cat-and-mouse game, India uncovers new gold smuggling route.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage