The European carbon market fell behind energy markets on Thursday, slipping to a one-week low despite a sharp rally in oil and gas prices following new sanctions on Russia from both the US and the EU.

The EUA Dec’25 contract briefly traded at €79.19 before closing the session at €78.44, down €0.02 on the day. Despite the broader context, the benchmark posted its third consecutive session of losses — a streak last seen in early August.

On the gas market, prices rose alongside oil, with the TTF front-month contract closing at its highest level in two weeks. However, the gains were less pronounced than in the oil market, where Brent crude climbed nearly 5%, extending a 2% rise from the previous session.

According to a press release following the European Council meeting on Thursday, the EU introduced “a ban on imports of Russian liquefied natural gas into the EU, starting January 2027 for long-term contracts, and within six months for short-term contracts, and tightened the existing transaction ban on two major Russian state-owned oil producers, Rosneft and Gazprom Neft.”

This marks the 19th package of EU sanctions against Russia and follows the sudden announcement made on Wednesday by the US Treasury Department imposing further sanctions targeting Rosneft and Lukoil — Russia’s two largest oil exporters — “as a result of Russia’s lack of serious commitment to a peace process to end the war in Ukraine.”

On Friday morning, the carbon market remained stable, fluctuating around Thursday’s close, while gas prices declined as weather forecasts returned to focus. “Europe is bracing for a volatile cocktail of windstorms and unusual autumnal heat,” according to Bloomberg, potentially putting bearish pressure on both gas and carbon markets.