EUA futures marked a weekly high last Monday at EUR84.22 and a low last Tuesday at EUR79.48. After that, EUAs range-traded for the rest of the week while looking for direction. December 2025 EUA futures closed on Friday at EUR82.28 per tonne, marking a weekly loss of 2% last week. EU Allowances remain in price discovery mode, caught between short-term and long-term fundamentals, broader energy market dynamics, and speculative positioning. Positioning in EUA futures has continued to build, with 54mn tonnes of speculative net longs added since mid-December, while auction volumes totalled just 46mn tonnes. With speculative length building, the key question remains: is positioning a reflection of conviction on future tightness, or are we seeing a momentum-driven rally that is vulnerable to reversal?