The highly anticipated WCI Auction #16 result was oversubscribed for both current and future vintage allowances. This auction was the first California/Quebec joint auction after Ontario departed the market, and saw for the fourth time since last November previously unsold allowances offered for sale. Current vintage allowances cleared at $15.05, $0.52 above the auction floor price and $0.10 below the secondary market on the day prior to the auction. It was also oversubscribed with an auction cover ratio of 122%, meaning that 17.5M bids were not filled. The future vintage auction was even more oversubscribed with a record auction cover ratio of 145%, meaning 4.2M bids were not filled, which w

Bullish sentiment in recent months could help counteract weaker underlying fundamentals in Tuesday’s WCI auction, while Ontario’s departure from the programme will continue to limit price increases over the next decade, according to analysts. Tuesday’s sale offered nearly 89 million current allowances, including 15.9 mln units that went unsold at previous auctions. The results will be published on Aug. 21. It was the first WCI auction after Ontario Premier Doug Ford revoked the province’s participation in the joint ETS in June. Although Ontario’s quick exit from the linked market had an initial bearish impact, WCI prices have since recovered by around 25 cents to settle at $15.14 on the Aug-