Price of EU carbon falling in an oversold market

Carbon prices have fallen to its lowest levels in almost three years as the market continues to appear oversaturated and oversold.

Benchmark EU Allowances (EUAs) dropped as low as €11.05 a tonne on Wednesday, due to heavier selling on fears of a double dip recession.

The Relative Strength Index (RSI) has fallen below the 30 points mark to 28.176, suggesting the market has been oversold.

EUAs have fallen nearly 40 percent since March, after rising to €18.18 in the aftermath of the nuclear crisis in Japan.

Traders on Wednesday said a continuation of falling prices as trading enters a summer slump with little purchasing.

Prices in the EU's emissions trading scheme have languished after a sell-off in June prompted by Greece's debt crisis.

Article by Diva Rodriguez | Climate Action