Weekly Carbon Outlook – 4 Dec 2017

December 4, 2017 by chandan.kumar

Trading Report

  • CCA prices saw a 2-cent gain at the start of the week and continued a steady increase until a 1 cent drop as the week ended. The current front and benchmark (V17 Dec17), closed the week at USD 15.19
  • The OCA front and the benchmark prices now stand at CAD 19.28.
  • Open interest contracts saw a dramatic gain since last week of 4,377,000 contracts
  • The total traded volumes saw a slight increase from 7,360,000 tons to 7,513,000 tons

Price Expectations

  • Prices continue to trend flatly as spread trading dominates
  • CCA market front yet to see a big trading week after November auction
  • Ontario auction likely to clear and add 25.29 million allowances to supply

CCO Tracker

  • Close to 300K ROCs were approved by the Climate Action Reserve last week.
  • Garcia River Forest – ARB (CAR1098) accrued the highest proportion of ROCs for the week with over 156K ROCs received
  • CCO 8 prices declined 19 cents while CCO 3 prices saw a 6-cent gain
  • The backlog of ROCs awaiting ARB’s approval has now increased to 34.3 million due to the recent ROC issuances


Key Dates

  • Dec 6 – Results of the Ontario Cap and Trade Auction of Greenhouse Gas Allowances.
  • Dec 14- Third Public Board Meeting on the Proposed Scoping Plan
  • Jan 1- California and Quebec’s Cap-and-Trade program will link with Ontario’s Cap-and-Trade Program

Download this report (pdf)

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