The month began with a sense of caution, as EUA prices struggled to gain significant momentum. The front-year contract experienced a range of highs and lows, with prices reaching a high of €90.44/tonne and a low of €83.00/tonne. Prices closed at €85.10/tonne on the 1st, showing early signs of uncertainty in the market. Traders were closely monitoring global events, particularly those affecting energy markets and geopolitical developments.
In the second week, EUAs continued to face volatility. Prices alternated between €82.30/tonne and €86.92/tonne, reflecting market participants’ attempts to find a stable direction. Prices closed on August 11th stood at €86.73/tonne, suggesting a potential bullish sentiment as the week concluded.
The third week of August brought both excitement and challenges to the EUA market. Prices soared to €88.16/tonne on August 14th, marking a significant high point for the month. However, this upward trajectory was met with resistance, and prices subsequently retreated. Prices on August 18th closed at €88.01/tonne, indicating a tug-of-war between bullish and bearish forces. Market participants closely followed developments related to emissions targets and regulatory changes.
As the month progressed, EUA prices faced renewed pressure. Prices dipped to a low of €84.50/tonne during this week, reflecting a more bearish sentiment in the market. Prices on August 25th closed at €85.39/tonne, indicating a period of consolidation as traders assessed the evolving market dynamics.
The final week of August witnessed a degree of stability, with EUA prices moving within a relatively narrow range. Prices ranged from €86.50/tonne to €84.52/tonne, suggesting a balanced market sentiment. Prices on August 31st closed at €85.76/tonne, reflecting cautious optimism as the month concluded. Market participants were keenly focused on policy developments and the potential impact on carbon prices in the coming months.
Francesco Rogato
With his commodity trading experience, specializing in the energy sector, and extensive knowledge of European exchange platforms and Over-The-Counter markets, he brings his advanced analytical view on the EU ETS carbon market in a monthly short blog, “Let’s Talk Carbon”.