European Union carbon permits may drop below 6 euros a metric ton before a vote on plan to temporarily fix the market glut set for Dec. 13, according to Deutsche Bank AG.
Isabelle Curien, an analyst at the bank in Paris, forecast prices will trade from 6 euros a ton to 8 euros a ton in the period, according to an e-mailed research note.
“However, given the very large volume of allowances coming to market in coming weeks, particularly from the pool of 120 million Phase-3 allowances to be auctioned early, we think there is a risk that prices could fall below 6 euros a ton in the short term,” she said.
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