After a revival in the price for CO2 rights, this part of the energy market has also calmed down after a number of corona months that turned everything upside down.
This week, the price stabilized around $27. Now the price of CO2 rights is back to the level it was before the corona crisis. The rebound is partly due to speculation. Traders responded to the price drop as a result of the corona crisis by buying.
The price fluctuation is also related to the uncertain nature of the trading of emission rights. Supply and demand are difficult to predict and, moreover, politics has a major influence when it comes to changes in taxes and climate targets, depending on the political leaning in charge. In the long term, experts do not rule out a price of €50 to even €100 per tonne of CO2.
The stabilized CO2 rights market is in line with the general picture that the energy market is stable, now that the corona crisis appears to be under control, at least in Europe. The price of agricultural diesel rose slightly this week to just over €0,90 per liter. The supply of crude oil has shrunk unprecedentedly in a short period of time.
For the time being, there is no prospect of demand returning to pre-coronavirus levels. For weeks, the price of crude oil has fluctuated between €40 and €45 per barrel. The gas price has also been stable for weeks. Slightly higher than €5 per cubic meter and that will probably not change in the near future. The supply of Norwegian and Russian gas is decisive.
No major changes are expected in the market for renewable electricity either. This spring, this market turned out to be mainly a weather-dependent market. The record sunny spring resulted in a 40% increase in solar energy compared to last year. The year-on-year increasing capacity also plays a role.
No extremes in sunshine and wind force are expected in the coming weeks, neither negative nor positive. In any case, the power-hungry air conditioners will not run at full speed, since heat waves such as in 2018 and 2019 have not yet materialized this year.
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