European carbon emissions futures edged lower today, as German power and gas prices softened and imminent new supply put pressure on prices, traders said.

EU allowances for December delivery were down 11¢ or 0.85% at €12.85/t ($17.42) at 08.06 GMT, with light volume at 464 lots, reports Reuters.

Open interest on the 10 December contract has been increasing since January. Wednesday’s total rose to 131.5 million, suggesting players were building medium to long-term positions.

Demand for EUAs has been low due to expectations of milder weather and more wind power supply for the next few days. 2010 EUAs will be distributed next week, which is also putting pressure on prices, according to traders interviewed by Reuters.