CFP Energy Call Report - 07 February 2012
Yesterday morning, UK prompt gas at 6 year highs and a strong German power market sent carbon back to its levels of Friday morning as people ran to cover shorts, driving the EUA up to €8.79; thereafter sellers came out and drove the price back down to €8.55 on the Dec12 EUA. German power and UK gas sold off gently but carbon rallied strongly into the close, settling near its highs at €8.70.
This morning, the EUA opened higher, though has now sold off to €8.62, despite much stronger Oil (Brent) overnight. German power is slightly weaker in the Cal 13, perhaps as negative news flow over Europe’s chill subsides and traders take profit. Gas is still looking strong as high demand caused by the cold threatens shortages in Italy. Brent is the big story overnight, having finally broken through the $115 mark, with the March contract trading a high of $116.70 driven by increased demand in Europe (on colder weather).
Economic events/data release (GMT):-
- German Auction of 300,000 Spot EUAs through EEX (8:00 AM)
- Greece money market transactions for 6 month funding (11:00 AM)
- API US Crude Oil Inventories (15:45 PM)
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Underperforming Power
The energy sector has had a very subdued start to the new year. Despite cold weather forecasted for the February,…
| Commodity | Return (Daily) |
Return (Monthly) |
| EUA DEC 12 | -2.75% | 3.41% |
| EUA DEC 13 | -2.64% | 3.48% |
| CER Green | -2.84% | -11.64% |
| CER Dec 12 | -1.18% | -9.91% |
| CER DEC 13 | 0.00% | -8.29% |
| ERU Dec 12 | 0.00% | -10.04% |
| ERU Dec 13 | 0.00% | 0.21% |
| Oil (Brent) | 0.40% | 7.94% |
| German P 13 | 0.66% | -5.42% |
| German Base 1M | -3.32% | -1.16% |