LONDON (Reuters) - European carbon emissions futures rose slightly but continued to trade in a narrow range as higher energy prices failed to make much impact, traders said.
EU Allowances for December delivery were up 7 cents or 0.53 percent at 13.20 euros a tonne at 1113 GMT, with light volume at 1,392 lots. They opened trade at 13.13 euros.
Traders said prices were stuck in a narrow range, failing to track more volatile energy prices. This month prices have traded between 13.01 and 13.60 euros a tonne.
"It"s quite frustrating. The UK auction could give a bit of a lift next week but I think we could continue like this until April," an emissions trader said.
The European Commission will release European industry"s emissions data for 2009 in April, which traders will be watching for signs of economic recovery.
In the near-term, a UK auction of 4.5 million EUAs on March 18 could help boost prices, some traders said.
"The auction could help lift prices. People are looking to Phase 3 and banking, so they are attracted by cheap EUAs," another trader said.
In the third phase (2013-2020) of the EU"s Emissions Trading Scheme, most EUAs will be auctioned and prices are expected to be higher. Many utilities are buying EUAs now while they are cheap to bank into the next phase.
Germany will auction 570,000 EUA futures at 1400 GMT, though traders did not expect it to have much impact on the market.
The German utility E.ON AG said it received 50 million tonnes free carbon permits in 2009, allowing the company to make hundreds of millions of windfall profits according to one analyst.
The group emitted 94 million tonnes of carbon dioxide in 2009, said chief financial officer Marcus Schenck, some of which included emissions from power plants E.ON operates for other companies.
E.ON specifically had to purchase 16-17 million tonnes of carbon permits, receiving another 50 million tonnes for free.
Oil fell toward $81 a barrel on Wednesday in volatile trade as expectations for a gain in U.S. crude stockpiles offset surging Chinese imports.
German Calendar 2010 baseload power was up 1.15 euros at 45.90 euros per megwatt hour.
Certified emissions reductions were up 7 cents or 0.60 percent at 11.80 euros a tonne.
(Reporting by Nina Chestney; Editing by William Hardy)
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