The market has appeared to stabilise, with prices responding to the recent emissions price rises, with a steady return to levels seen in February. Furthermore, the awaited return of Rough has seen steady buying of Q3 as more gas will be pumped into storage.

Perhaps the next piece of market news is likely to be quite bearish, the annoucement of the Polish emissions position, if this is very long 15m tonnes plus, then we would expect this to have an effect on emissions market prices. In reality it is becoming more accepted that the length within the market is reluctant to sell but players will take note of a the Polish result. Some players new to markets struggle in understanding in terms of how to sell something which they do not physically own, and this may explain why the longs just have not been present in the market, because in many cases they have not physically had the certifcates in which to trade.