Overview

EUA prices extended their multi-week advance last week, notching a fourth consecutive weekly gain as the Dec-26 contract rode a winning streak dating back to the prior Friday. The contract was around €84.9 on Monday, before pushing to an intraday high of €86.00 on Tuesday, a 5-week high. Momentum faded into the back half of the week: the streak snapped on Friday as prices settled at €85.52 — still up on the week overall but off the midweek peak.

On the policy side, EU member states provisionally agreed on Friday to delay rather than scrap the automatic cancellation of surplus allowances held in the ETS Market Stability Reserve; traders read the softer supply-tightening outcome as mildly bearish, and that news landed just as gas itself pulled back over 3% on Friday — together enough to end the five-session winning run, even though carbon's own pullback was proportionally much smaller than that seen on natural gas TTF futures.