RSS| European Union Carbon-Dioxide Permits Decline |
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European Union carbon permits retreated from a one-week high yesterday, tracking crude oil lower on concern that fuel demand may be slow to recover. EU permits for December lost as much as 1.2 percent to 13.06 euros a metric ton on London’s European Climate Exchange, dropping below a 20-day moving average of 13.22 euros. They traded at 13.10 euros as of 10:10 a.m. The contract closed 3.7 percent higher yesterday, posting its biggest daily gain in a month after the U.K. received bids for a record 30.5 million metric tons at its latest auction. Brent crude for delivery next month dropped as much as 1.2 percent to $71.25 a barrel on the London-based ICE Futures Europe Exchange. It was also hurt by a decline in equity prices before the release of today’s U.S. payroll report, which will offer more clues about the strength of economic recovery. Oil can influence carbon prices because it’s linked to economic output and to cleaner-burning natural gas in Europe. Seventeen of 43 analysts, or 40 percent, said oil will drop through Feb. 12, according to a Bloomberg survey. Fourteen respondents, or 33 percent, forecast an increase, and 12 said prices will be little changed. Last week, 47 percent of analysts forecast a decline in futures. German electricity for delivery next year pared earlier gains and was little changed near its lowest price in 11 months. Emissions sometimes follow power prices in Germany, the EU’s biggest emitter, because it’s a measure of demand for energy and economic production. |
| Last Updated ( Friday, 05 February 2010 19:05 ) |
