EU CO down on softer appetite increasing assent supply

LONDON Fri Feb 19, 2010 10:06am EST Related News EU CO2 eases, ignores UN climate head departureThu, Feb 18 2010EU carbon prices slide under 13 eur/tWed, Feb 17 2010EU carbon at 8-day low on weak energy, bank sellingMon, Feb 15 2010EU carbon drops on weak energy, German GDP figuresFri, Feb 12 2010EU carbon steady as oil, stocks supportThu, Feb 11 2010

LONDON (Reuters) - European carbon emissions futures edged lower on Friday, as German power and gas prices softened and imminent new supply put pressure on prices., traders said.

EU Allowances for December delivery were down 11 cents or 0.85 percent at 12.85 euros ($17.42) a tonne at 0806 GMT, with light volume at 464 lots.

"Carbon seems to find support around the 12.85-12.95 level," an emissions trader said.

Open interest on the Dec-10 contract has been increasing since January. Wednesday"s total rose to 131.5 million, suggesting players were building medium to long-term positions.

Demand for EUAs has been low due to milder weather and more wind power supply for the next few days. 2010 EUAs will be distributed next week, which is also putting pressure on prices, traders said.

British gas prices eased on Thursday, despite ongoing high demand and tightening supply, as milder weather in continental Europe and warmer temperatures expected for Britain next week helped allay concerns about a strike at a liquefied natural gas (LNG) port.

German Calendar 2010 baseload power on the EEX was down 41 cents at 47.55 euros per megawatt hour.

U.N.-backed certified emissions reductions were slow to trade.

U.N. climate chief Yvo de Boer said on Thursday he will step down in July to join a consultancy group, saying a new

U.N. climate chief Yvo de Boer said on Thursday he will step down in July to join a consultancy group, saying a new era of diplomacy was starting after the Copenhagen summit fell short of agreeing a new treaty.