Euro Markets: EUAs drop to settle at 16-month low as Monday’s buying fades while market eyes COT

Carbon allowances in the EU ETS settled at their lowest level in 16 months on Tuesday, giving up Monday's gains amid steady selling as buyers appeared to retreat after Monday's energetic showing and ahead of the weekly Commitment of Traders report, while energy prices weakened even as the market eyed rising tensions in the Red Sea that may impact LNG shipping.