Overview

EUAs pushed higher last week, closing at €77.55 after reaching highs of €78.45, a 2.6% weekly gain. Despite largely neutral fundamentals, investment funds extended their net longs to over 100 MtCO₂, while shorts remain limited at just 31 MtCO₂, keeping upward pressure on prices. The September options contract expires this Wednesday, with open interest clustered around the €75 and €80 calls. Implied volatility is low at 20.9%, suggesting the market expects little movement into expiry. But as this the final full week of trading before the surrender deadline, any last-minute compliance buyers are being forced to pay the very top of the market: the highest EUA price since February.