According to ICE’s Commitment of Traders latest report, published on Wednesday and based on market data up to 3 October, investment funds resumed increasing their net long positions in EUAs after a modest reduction in the previous week.

“The weekly purchased volume was the third largest in the past eight months,” reported Quantum Commodity Intelligence, adding that net long holdings reached 113.1 million allowances — “a level not seen since at least 2018 and a likely record high.”

The data show that speculators increased their long holdings in EU Allowances (EUAs) from 103.3 million to 113.1 million allowances. During the same period, they slightly raised their short positions from 27.1 million to 27.4 million allowances.

The reason behind this massive accumulation is “the growing anticipation of tighter supply next year,” said analyst Alessandro Vitelli. According to the European Commission, the frontloading of auctions for the purpose of REPowerEU is expected to end “at the latest on 31 August 2026.” Furthermore, the implementation of the Carbon Border Adjustment Mechanism (CBAM) and stricter emissions caps are also expected to continue to tighten the supply of EUAs.

Market activity reinforced the sentiment outlined in ICE’s latest report. The December 2025 EUA contract settled at €79.16 on Friday, marking a seven-month high and a 4.2% weekly increase — the largest since week 23.