The week opened with a noticeable downward correction on the European carbon market in line with gas and coal markets. At the end of the session, the EUAs closed at €79,36, posting a daily loss of €2,31, the biggest in six weeks.

The European gas market also “had a bearish start to the week as the concerns surrounding Freeport LNG potentially not exporting at the end of last week appear to have now passed and the European Commission confirming talks are continuing with Ukraine around transit gas towards Europe,” writes Auxillione in a note this morning.

Favorable weather conditions such as warmer weather and strong wind power also have added to the downward pressure on prices on energy-related markets. However, a cold start to February , predicted by some weather forecasts, could change the situation rapidly.

Apart from the bearish support from the related markets, yesterday’s downturn was attributed to profit taking among speculative traders following the recent gains. “The losses were also somewhat expected as speculative investors had been building up long positions over the previous weeks,” writes Energi Danmark this morning. 

We continue to see falling prices early in Tuesday’s session, despite rising prices on both gas and coal markets. The EUA Dec’25 is currently slightly below yesterday’s close, after trading briefly €78,30, a level last seen a week ago, while TTF gas is around 1,6% higher.