As front changes over to Dec18 this week, entities are engaging in trades and expressing interest onto the next vintage, unsurprisingly so. Both trades and OI have spiked for Dec18 and future deliveries as entities are actively trading on the market before price floor hits starting next year. The mid-week drop in allowance prices also may have triggered a relatively higher demand for allowances. Beginning of the week prices stayed the same while few latter deliveries gained a cent. The following day allowances saw an average drop of 3-cents with Dec19 dropping 4-cents as transactions of up to 3.2 million were made under this delivery. Prices continued to go down up until the last day week as prices gained a cent. As of Friday (11/30), front price which is the benchmark (V18 Dec18) is trading at USD 15.55.
Certain states in the USA and Canada, along with Mexico and China, have been discussing the implementation of various carbon pricing schemes. The successful linkages of the California and Quebec carbon markets provide a blueprint for any potential future market linkages. CaliforniaCarbon.info is keeping tabs on cap-and-trade discussions worldwide, to keep our subscribers informed of any policy changes that could change the shape of the carbon market.
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