So far, 2018 has been a very bullish year on the European market for carbon emissions. On the first trading day of the year, January 2, a quota cost 7.81 EUR/t, but since then, the level has increased explosively. During a few weeks in January, the quota price rose to 9.50 EUR/t, and was following a minor downside at a level around 9 EUR/t in the following weeks.
Early this week, the market has once again seen a very bullish momentum. Tuesday afternoon, a quota is traded at 9.69 EUR/t, and we are now getting close to the price breaking above the 10 EUR/t. The last time the quota price was above this level was back in the autumn of 2012, more than five years ago.
The reason why the market – which appeared to had stabilized around the 9 EUR/t – has once again started to increase, is that several of typical buyers appear interested in hedging now, instead of waiting. This can be interpreted as a signal from the market that there is a common expectation that the price will increase further soon, most likely above the 10 EUR/t.
The big upside on the quota market also affects the European electricity prices. Thursday afternoon, the German Cal-19 contract has gained 0.40 EUR/MWh, while the correspondent Nordic contract is up 0.72 EUR/MWh.
Sopiva riskienhallintastrategia on kannattava sijoitus
Week 20 was again not the week in which the price climbs came to an end, either in the Nordic energy market or in Germany or the international fuel markets.