(Reuters) – European carbon emissions futures were down 3 cents or 0.2 percent in early trade on Wednesday, following strong gains on Tuesday.
Gulf Oil Spill
EU Allowances for December delivery in 2011 were trading at 16.03 euros ($21.51) a tonne at 0705 GMT.
Dec-10 certified emissions reductions (CERs) were unchanged at 13 euros a tonne, setting the EUA-CER spread at 3.03 euros.
Traders said strong gains on Tuesday had prompted a more cautious opening across power, gas and carbon on Wednesday.
“All the markets are a bit slack, taking a breather,” one trader said. “It’s a very quiet open.”
“Carbon had a rally on Tuesday, gas and power too.”
A UK auction of 4.4 million EUAs on Thursday would bring more volume to the market, possibly delaying a new upward trend, he added.
“I think there’s essentially some bullish signals on carbon. But it’s a little premature given we have a lot of volume coming in. It’s likely we’ll retrace a little before we gain a new direction.”
German Calendar 2011 baseload power on the EEX was down 9 cents at 54.45 euros per megawatt hour.
Oil rose for a third day on Wednesday, nearing $73, after an industry report showed a larger-than-expected decline in U.S. crude stocks, bolstering the view that a glut will dwindle as demand resurges.
(Reporting by Gerard Wynn; editing by James Jukwey)