Friday, January 20, 2012

Carbon price advances

Carbon has been advancing all this week, on the back of rising power prices [price chart below] and increased hedging thereof.



















UK NBP gas prices - benchmark on the energy market - has risen this week as well [compare last 4 candles of the chart below], which could have given support for carbon. Gas power generation became more expensive compared to more pollutive coal generation.



















EUA Dec12 steadily climbed and stayed above 7.00 EUR, however the rally was stopped at a resistance level of 7.40 EUR. Shall 7.15 EUR (or even 7.20 EUR) support be held and the gas price continues to advance, we may actually see carbon breaking 7.40 and establishing new "highs" for this year.

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