| Sourced From |
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.
To contact the reporter on this story: Mathew Carr in London at [email protected]
To contact the editor responsible for this story: Stephen Voss at [email protected]