The outlook for the UK ETS this week is neutral/bullish. Last week we identified a pennant candlestick formation that has sent UKA prices higher to 78 GBP. The market looks likely to be squeezed higher as few sellers emerge heading into the end of the compliance season. With only intermittent supply at fortnightly auctions (the next one is next week, on Wednesday) and likely continued strong demand from utilities in the absence of good wind levels, heading into the easter break we anticipate subdued trading, and a modest grind higher. Friday is an exchange holiday.
UK ETS Outlook: neutral/ bullish
Indicative UKA price: £77.35
YTD average UKA price: £78.49
MTD average UKA price: £74.82
|1. UKA Dec22 Price Chart||2. Snapshot of UK energy generation 4/4|