On Friday, the European carbon market dipped below €70 for the first time this month, breaking through resistance after several failed attempts, in line with a broader decline in European energy-related markets.

EUAs settled at €69.89 for the week, down 0.93%, after trading within a narrow range of just €1.19. Traders reported “a lack of strong momentum in either direction,” as stated by Carbon Pulse.

Trading volume on Friday was notably light, with only 18.03 million allowances exchanged, compared to the weekly average of approximately 19.6 million. This remains well below the yearly daily average of 30 million allowances, highlighting the usual slowdown during the holiday period.

In the gas market, the TTF front month closed the session with a notable daily loss of 2.36%, amid increased gas flows from Norway and stronger wind forecasts in Germany. Furthermore, “Asian LNG demand is stabilizing after a recent heatwave, reducing pressure on European imports,” according to Trading Economics.

We anticipate the carbon market will remain confined to a narrow trading range, reflecting the current lack of clear direction and sentiment. However, unforeseen events—such as unplanned outages in Norway or nuclear disruptions in France—could trigger sudden price movements.