EU Emission Permits Rise to Four-Month High as Oil, Stocks Gain

By Rachel Graham

May 8 (Bloomberg) -- European Union emission permit prices rose to a four-month high in London as crude-oil prices and stock markets advanced, signaling that the economy and demand for carbon allowances may strengthen.

EU carbon dioxide allowances for December added as much as 85 cents, or 5.7 percent, to 15.70 euros ($21.09) a metric ton on London’s European Climate Exchange. That’s the highest intraday price since Jan. 7. The contract traded at 15.58 euros as of 1:30 p.m. local time.

“It’s the whole positive environment,” Roland Stenzel, a trader at E&T Energie Handelsgesellschaft mbH, said by telephone from Vienna. “Oil has recovered well; equities are strong.”

Brent crude for June delivery rose for a third day. Stocks climbed after Federal Reserve Chairman Ben S. Bernanke said the U.S. review of the banking industry’s health “should provide considerable comfort.”

To contact the reporter on this story: Rachel Graham in London rgraham13@bloomberg.net