EU carbon futures drop below 15 euros, down 9 pct

LONDON (Reuters) - European Union carbon emissions futures dropped by more than 9 percent on Thursday to below 15 euros a tonne, its lowest level since March 2007.

Benchmark EU Allowances (EUAs) dropped 1.53 euros or 9.4 percent to an intraday low of 14.80 euros ($18.72) a tonne. Volume was at 3,183 lots traded.

"The selling is not particularly aggressive but there is a distinct lack of buyers so prices are just drifting down," an emissions trader said.

EUAs have followed a bearish trend for the past couple of weeks. They started the beginning of the month at around 18 euros but have gradually declined.

"It's hard to imagine that emissions would have a big rally today with everything else coming off. Coal and oil are lower, German power is down from yesterday's close, so it's understandable that EUAs have come off as well," a trader said.

"I don't think there is a lot of support at 15 but it is difficult to judge. If EUAs close lower than 15 we can say the support has failed and we might see further downside."

U.S. light crude oil for December delivery fell below $50 a barrel for the first time since January 2007, as battered financial markets reflected ever lower confidence in the world economy and evidence mounted of falling fuel demand.

German Cal '09 baseload power was also lower at 57.50 euros per megawatt hour.

Volume swelled on EUA spot market, which are also driving EUA futures lower.

Certified emissions reductions (CERs) fell 1.21 euros or 8.17 percent to 13.60 euros a tonne. The EUA-CER spread was at 1.30 euros.

For additional news and analysis on the global carbon markets, go to here

(Reporting by Nina Chestney; Editing by James Jukwey)