ADVANTAG : Emissions Trading / Carbon Market News (2017-01-09)

Dear Ladies and Gentlemen,

Just as fast as the rally pushed the CO2 price upwards at the end of the year, as fast was the subsequent correction in the past week. The decline in prices started already on Monday with considerable profit-taking and then continued massively during the following trading days.

Already until Wednesday, the market for European pollution rights had to accept a loss of around 1.25 EUR. After a short-term recovery then again dominated the bears in the market and forced the price further down to currently just under the five euro mark.

The carbon market has thus been completely decoupled from the rest of the market since September last year and has been driven by speculative dealers between EUR 4.00 and EUR 6.50. Starting from the current price level at around EUR 5.00, the market is unlikely to find a solid ground again in the short term. Against the backdrop of the today starting high-volume auction calendar, a further correction in the direction of the four-euro mark would therefore be quite conceivable.

(Average Quotes Exchange / OTC)
Instrument	2017-01-06	2016-12-30	Change
EUA (Spotmarket)	5.03 EUR	6.54 EUR	-1.51 EUR
EUA (December-2017-Future)	5.05 EUR	6.57 EUR	-1.52 EUR
CER (Spotmarket)	0.27 EUR	0.27 EUR	+0.00 EUR
ICE Brent Crude Oil (Benchmark Future)	56.78 USD	56.67 USD	+0.11 USD
EURO (Currency, Forex)	1.0534 USD	1.0521 USD	+0.0013 USD

(The average exchange quotes and OTC-prices shows the average between bids and ask of several exchanges and OTC markets for carbon emission rights in the ETS. Bid and ask have usually in Spot Market a visible spread. CER CP1 and ERU are eligible in ETS until end of March 2015 and must be swapped into EUA. Crude Oil and Euro Currency shows day-end-exchange quotes. These market information has just an informational character and are no advice or offer to trade carbon emission rights or their futures and options. If you want to unsubscribe, please reply to this mail.)

Please call our international carbon desk if any further questions exist: +49.2831.1348220 or +44.20.79790283.

With kind regards,

Advantag Brokerage GmbH