Traders May Buy EU Carbon After Supply Glut Fix, New Energy Says

Traders may buy carbon permits tomorrow after the European Commission proposed to temporarily delay the sale of 900 million metric tons of allowances in the three years through 2015, said Bloomberg New Energy Finance.

“There could some speculative buying in the morning in response to this,” Konrad Hanschmidt, an analyst for Bloomberg New Energy Finance in London, said today in an e-mail. “The bullishness is however likely to be short-lived due to rising market supply.”

There is 12.7 million tons of auctioning supply arriving in the four days through Nov. 16, which “could start to weigh down on prices later tomorrow.”

To contact the reporter on this story: Mathew Carr in London at m.carr@bloomberg.net

To contact the editor responsible for this story: Alessandro Vitelli at avitelli1@bloomberg.net

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