EU permits for December 2010 fell 50 cents, or 3.6 percent, to 13.51 euros ($17.55) a metric ton on London’s European Climate Exchange as of 5:36 p.m. It was earlier today as low as 13.48 euros a ton, the lowest intra-day price since April 9.
The EU program is the world’s biggest greenhouse gas trading market. The system may have an oversupply of 1.3 billion tons of allowances and credits in the five years through 2012, its second phase, according to research by Bloomberg New Energy Finance in London. That amounts to 12 percent of a cap of 10.7 billion tons.
Not good for some I suspect. An oversupply of 12%.
Methinks the market is about to crash