Overview

A minor week on week decline last week EUAs corrected on Thursday after a bullish run that saw the benchmark contract tip towards €78, before falling several euros to €75.77 at close. The Commitment of Traders Report last week showed investment funds adding a hefty 22Mt net long on ICE, as buying pressure seems sustained in the run up to the first September surrender deadline in the history of the ETS. Energy markets continued to struggle to have an effect on carbon with TTF natural gas futures showing high volatility in the face of strong LNG imports and uncertain demand. EUA futures currently show more correlation with German power futures as traders are more focused on the end of the compliance calendar than anything else.