European Union carbon permits, the world’s fastest-rising commodity in June, advanced to their highest in more than three months after the bloc unveiled a $149 billion growth plan for the region’s economy.
Allowances for December jumped 3.6 percent to close at 8.28 euros ($10.48) a metric ton on the ICE Futures Europe exchange in London. They gained 30 percent this month. United Nations emission credits are ranked second-fastest for the month, rising 23 percent.
The two carbon benchmarks beat U.S. wheat’s 16 percent rise U.S. corn’s 15 percent increase and U.S. natural gas’s 14 percent advance, according to price data for 80 commodities compiled by Bloomberg. The worst performer was gasoline traded in Singapore, which fell 13 percent. Brent crude oil traded on ICE has declined 6.2 percent.
“Carbon has continued to hold up in the face of weak energy markets and continuing concerns about the debt-laden euro zone,” Matthew Gray, an analyst in London at Jefferies Bache Ltd., said today in an e-mailed research note. “With regulatory intervention in sight, carbon has no reason to follow its traditional price-drivers with any real conviction.”
Carbon allowances jumped June 25 to their highest in more than three months in intraday trading as regulators in Brussels considered temporarily withholding supply sold in auctions in the three years starting next year. The bloc is seeking to fix an oversupply in the market, which otherwise will extend beyond 2020, according to a June 22 forecast by Trevor Sikorski, an analyst at Barclays Plc in London. Regulators have proposed to detail a plan by the end of next month.
UN emission credits for December gained 2.7 percent today to 4.13 euros a ton on ICE.