Grey Epoch

We are delighted to attend the 2024 Energy Risk Awards Ceremony to pick up our award for Liquidity Provider of the Year. Members of the Grey Epoch Europe Team Emilio Fontana, Victoria Basterra Gil and Beatriz M. picked up our award last night, celebrating with other professionals at the forefront of the energy industry. Read more about Grey Epoch written by Risk.net here: https://lnkd.in/erwkxdbN #celebrate #winners #awards #EnergyRisk #ETS

Another quiet week across the European Energy complex. We understand that Freeport LNG is now coming back online after Hurricane Beryl induced an outage. As a result, JKM (Asian natural gas benchmark) is now under 12 USD/MMBtu, reflecting a more comfortable perception of supply-demand balances. Weather forecasts suggest that the tropics should remain quiet in the current forecasting window (i.e. the next couple of weeks). In Europe, the weather is warming up, with Paris hitting 35 centigrade, just in time for the Olympics. So far 30 wildfires reported in Greece.   This morning in European power we saw downside across the board, except for the front month. In emissions, last week opened with the high of the week at €69.58 on Monday. Throughout the week, prices and volumes trended downward within a €3.86 range, hitting a low of €65.72 on Friday, the lowest since April 30th. The week ended with a settlement price of €66.30, marking a €2.89 decrease from the previous week. Join our newsletter to receive the full version of the Weekly Market Comments straight to your inbox: https://lnkd.in/gBBbYxZi #Emissions #EUETS #UKETS #Energymarkets #CarbonMarket

The UK's Climate Change Committee urges the government to strengthen the UK Emissions Trading Scheme (ETS) by raising carbon prices and linking with the EU ETS to drive decarbonisation. Current low prices hinder investment in clean energy. The UK is also exploring new measures to include greenhouse gas removals and waste incineration in the ETS. The goal: reduce emissions by 78% by 2035 and achieve net zero by 2050 Click to read the full article: https://lnkd.in/emz5WzM5 Reach out to Grey Epoch to learn more about the UK ETS #UKETS #carbonmarkets #UKClimate

A generally sedate week again in the European Energy complex. Weather-wise, heat continues in Eastern Europe, and temperatures are rising in Italy and Greece. 42 centigrade in Puglia with wildfires having already broken out in Greece. However, the Jet Stream remains south of the main Western and Central European demand centres, and as a result, France and the UK remain at lower than normal temperatures. Hurricane Beryl did affect the US Gulf, with local power cuts lasting for several days (including for the author’s extended family). We understand that Freeport LNG cancelled at least four LNG cargoes. Forecasts suggest that the tropics will be quiet for the rest of the month, with wind shear, dry air, dust and high pressure dampening storm activity.   Market-wise, there is nothing particularly of note to say, perhaps weaker than expected Chinese data today caused a dip in Natural Gas prices, and the heat has caused spikes in Eastern European power markets, particularly Hungary.   The EU ETS market reached its high at €71.85 on Monday, with the week’s low at €67.60 on Thursday. Tight trading ranges on Tuesday, Wednesday, and Thursday, suggest a lack of strong momentum. Despite low summer volumes, prices rallied back from Thursday’s lows on Friday with the December 24 contract ending the week at €69.19, down €1.14 from €70.33 the previous Friday. Join our newsletter to receive the full version of the Weekly Market Comments straight to your inbox: https://lnkd.in/gBBbYxZi #Emissions #EUETS #UKETS #Energymarkets #CarbonMarket

We are excited to announce that Grey Epoch has been added to zero44's new trading platform! Over the past year, we have collaborated closely with the zero44 team and their clients on the EU ETS. The addition of the trading platform benefits trade flows and operations. Zero44 simplifies carbon regulatory compliance for shipowners, managers, and operators by offering an end-to-end software solution. This platform helps manage commercial risks and strategic implications associated with CII, EU ETS, and FuelEU Maritime. To explore the platform, please click here: https://www.zero44.eu/ #carbonmarkets #EUETS #EUAs #shipping

The energy complex was generally quiet last week, with a lackadaisical summer feeling, (although those in the UK could be forgiven for thinking that “summer” doesn’t exist here). Overall, the week was dominated by politics, on both sides of the channel. In the UK the Labour Party came to power as expected. Early indications are that they will prioritise simplifying the planning and permitting system, facilitating for instance more onshore wind in the UK. They have also separately said in their manifesto that they will not issue any new permits for oil and gas extraction, although existing projects should go ahead. Also of note, the new UK government is likely to pursue closer links with the EU, which could include an arrangement to link the UK and EU ETS, although they have ruled out re-joining the single market or the customs union.   In France, although the RN was able to garner the largest vote share in the second round, the left alliance, including the greens, has the most delegates, although not enough to form a government. We wait to see how that settles out.   Turning to markets, the main weather related news is in the Gulf of Mexico, where storm Beryl has this morning made landfall as a category 1 hurricane south of Houston. Heavy rainfall is a major threat around Houston area in particular (although a Hurricane Harvey level rain event is not expected). We understand that Freeport LNG have ramped down production as a precautionary measure.   In EUAs, The week started with the low at €67.13. Midweek was the high at €71.95, the highest in 3 weeks. The week had a trading range of around 5 euros. Highest volume was on Wednesday, 33,610 Lowest volume was on Friday, 16,619. On Friday, Dec24 settled at €70.36. In the absence of anything better to do, TTF flat price continued drifting slowly down. In sympathy with outrights, front month vol now around 50, having been in the 60s at the beginning of June. Back end vol holds.    Very little to say of note in European power, largely rangebound with not much to report. Join our newsletter to receive the full version of the Weekly Market Comments straight to your inbox: https://lnkd.in/gBBbYxZi #Emissions #EUETS #UKETS #Energymarkerts #CarbonMarket

The UK carbon market might be poised for significant changes as the country votes today. A Labour victory could push carbon prices above £50, with analysts expecting closer alignment of the UK's carbon market with the EU ETS. The market has rebounded from weakened positions under Prime Minister Rishi Sunak, who rolled back climate commitments. UK Allowances have recovered from a low of £31.42 on January 29th to £45.74 on July 1st. Labour's manifesto includes advancing the net-zero electricity target to 2030, potentially boosting clean energy investment. The UK ETS, operational since 2021, aims to reduce emissions by 78% by 2035 and achieve net zero by 2050. Reach out to Grey Epoch to learn more about the EU ETS and UK ETS #carbonmarkets #ukets #euets #emissions #election

Last week began with the highest December 2024 volume at 32,213 contracts. Midweek, the market reached a high of €69.09. Since the second half of May, the market has been on a downward trend, hitting a two-month low of €65.78 on Friday. However, on the same day, the December 2024 contract turned positive after being down for most of the morning sessions. This shift was driven by forecasts indicating lower wind power generation in Northwest Europe for July, which typically leads to higher emissions as fossil fuel power generation fills the gap. Additionally, German demand for energy is expected to rise, further increasing the need for emissions allowances. BloombergNEF also noted that higher maximum temperatures in Berlin and Italy could boost cooling demand, contributing to the increased need for carbon allowances under the EU ETS. The week finally ended with a settlement price of €67.47 on Friday, marking a €0.66 decrease from the previous week. Join our newsletter to receive the full version of the Weekly Market Comments straight to your inbox: https://lnkd.in/gBBbYxZi #EUETS #Emissions #CarbonMarket #EUAs

Hear what one of our clients has to say about Grey Epoch Europe’s services: “I really appreciate all the patience and professionalism displayed from day one of our business relationship even before our trading account with the Union Registry was opened. Grey Epoch offer hand holding experience with detailed and precise explanation with excellent technical knowledge as CO2 emission trading is totally new to the Maritime industry.” Reach out to Grey Epoch to learn more about the EU ETS. #EUETS #Emissions #EUAs #CarbonMarket

We hit with the week's low within a few hours of opening on Monday morning. While Tuesday was the most active day with over 37,000 December 2024 contracts trading, it traded within a narrow €1.60 range all day and closed virtually unchanged. Wednesday saw an increase in the benchmark future, rising €2 initially before giving back €0.50 to close almost €1.50 higher than the open. Thursday started bullish, reaching the weekly high of €71.60 during early trading hours. It was followed by a steep decline, falling €2.40 from its high. Friday saw another down day, sliding down €1.40 from the open to settle for the week at €68.13, almost unchanged from the previous week's close. Front-month power futures in central and western Europe (CWE) are retreating due to declines in the European energy complex, with France reversing some of its weekly gains. Most CWE countries experienced negative prices on Saturday due to high renewable energy output and reduced demand. Join our newsletter to receive the full version of the Weekly Market Comments straight to your inbox: https://lnkd.in/gBBbYxZi #EUETS #Emissions #CarbonMarket #EUAs