Overview

Fairly directionless trading last week with EUAs peaking the week at 76.95 on Monday before falling to lows of 74.41 on Wednesday to finish the week with a 2.3% weekly fall. Carbon prices remain under pressure as EUAs have struggled to hold gains despite strong auction demand, with macro sentiment and the ongoing Strait of Hormuz crisis continuing to dominate direction.

Prices have stabilised around the mid-€70s/t, but traders’ attention is firmly on the oil market and EUAs are seeing less action. In the month of April, trading volumes were 50% down on March…

Energy market divergence is also weighing on carbon. While gas prices have been supported by geopolitical risk, carbon has tracked broader risk assets, softening alongside equities. Milder weather and weaker near-term demand have added further downside pressure.