EU Regulation May Add €10 to Price
The EU carbon market, where benchmark prices are up 14 percent from a year ago, has an oversupply of about 460 million allowances for the five years through 2012, analysts led by Trevor Sikorski at the Barclays Capital investment bank in London said today, with the EU planning to remove these and set them aside. This would probably mean a "tight market, greater price volatility and an almighty scramble for allowances," Sikorski said. The bank forecast that EU prices will be 30 euros a metric ton in 2013. A 10 euro jump would represent a surge of 33 percent.
EU carbon for December rose 0.6 percent to 15.08 euros a metric ton on the ICE Futures Europe exchange in London as of 2:20 p.m. It traded earlier today as high as 15.14 euros a ton, the most since Feb. 3.
Investors in carbon credits before the EU option may benefit from volatility, and the tightened supply could lead to significant profit taking.
360investgroup
