From Point Carbon via New Values Community:
The price of European carbon for next year delivery firmed marginally during trade on Friday, as higher continental power and UK gas prices underpinned demand.
The benchmark December 2008 contract was valued at around €21.80 by 13.00 CET, up around €0.15 on Thursday’s closing price, after an early morning buying spree saw the contract reach a 7-day high of €21.95.
Traders said the prospect of a cutback in nuclear capacity in Germany and a union strike in the energy sector in France buoyed the German baseload 2008 power contract. By 13.00 CET it had traded around €61.15/MWh, up some €0.50/MWh on last night’s close.
“Bit of colder weather coming in and the prospect of some outages in the nuclear industry has seen power pick up half-a-euro. We are having a bit of a reaction to that,” one trader said....CERs for delivery in December continue to hold a level around €17.40-17.50, according to traders, but credits for delivery further down the curve came under pressure. Market particpants now claim the CER curve is in a “€0.05 per year contango.”
“There is a little bit of delivery risk in the near term years, so it is probably natural that the back end of the curve comes under pressure,” one trader said.
Over 2.5 million allowances had traded across all platforms by 13.00 CET.