The European carbon market rebounded on Thursday from the previous sessions’ two-week low, in line with related gas. The EUA Dec’24 contract last traded at €66,04, up 3,6% from Wednesday’s settlement when prices reacted to the negative sentiment triggered by Donald Trump’s reelection.
According to yesterday’s latest Commitment of Traders (CoT) data, investment funds cut their short position last week by almost 13%, from 56,5 million allowances to 49,7 million allowances. Meanwhile, speculators have reduced their long positions as well, from 41,4 million allowances to 39,3 million.
The European carbon market dropped to its two weeks low early Wednesday in response to Donald Trump’s victory in the US Presidential election. The market is factoring in Trump’s promises to pursue a radical shift for the US on climate policies put in place under the Biden Administration.
