EU carbon futures slide as crude weakens
LONDON (Reuters) - European Union carbon emissions futures slid toward 14 euros a tonne on Friday after oil prices fell by more than $2, traders said.
EU Allowances (EUAs) for December delivery fell 26 cents or 1.81 percent to 14.11 euros ($20.95) a tonne at 1547 GMT, with heavy volume at 3,582 lots traded.
"Crude has fallen this afternoon which has obviously impacted prices," an emissions trader said.
Oil fell under $78 a barrel on Friday, retracing some gains after larger-than-expected October U.S. unemployment numbers emerged to shake financial markets.
EUAs opened at 14.45 euros on Friday, after a controversial climate change bill cleared its first hurdle in the U.S. Senate on Thursday, allowing President Barack Obama to tout progress in the run-up to next month's global warming talks in Copenhagen.
Prices started to decline after climate negotiators said a new climate pact may need an extra year or more, beyond the original December deadline.
Traders said crude oil's decline was big enough to evoke a real movement downwards in carbon prices, and could push them below the 14 euro threshold they have resisted since October 12.
German Calendar 2010 baseload power on the EEX was down 45 cents or 0.95 percent at 47.05 euros per megawatt hour.
Certified emissions reductions fell 26 cents or 1.93 percent to 13.18 euros a tonne.
(Reporting by Nina Chestney; Editing by xxx)
