Carbon prices dip after strong open

LONDON, June 30 (Reuters) - European Union carbon prices dipped 9 cents even as oil climbed higher in morning trade on Tuesday, after opening strong and hitting a three-week high.

EU Allowances (EUAs) for delivery in December CFI2Zc1 fell 0.6 percent to 13.47 euros a tonne at 1012 GMT, after opening at 13.80 euros a tonne.

In morning trade prices hit 13.85 euros a tonne, tracking a rise in oil and marking their highest level since June 8, before falling. Traders said they expect prices to remain steady.

"Prices have been a bit range-bound," one trader said. "The fact oil roofed and we didn't go very far made everyone think carbon can't go much higher."

Oil rose above $72 a barrel on Tuesday CLc1, paring gains after earlier jumping more than 2 percent on unprecedented Asian trading volumes.[O/R]

German Calendar 2010 baseload power F1BYc1 was up 9 cents or at 50.64 euros per megawatt hour.

From October and November, industrial companies could start to dump some of their excess 2009 EUAs as they will have a better view of expected fourth-quarter industrial activity by then. At that point, prices could fall to around 10 euros a tonne, analysts have forecast.

Benchmark certified emissions reductions (CERs) CEREZc1 fell 10 cents to 11.90 euros a tonne. The EUA-CER spread was at 1.57 euros.

U.S. President Barack Obama, fresh from his first legislative victory on climate policy, said on Monday he was confident the U.S. Senate would also move to pass new limits on greenhouse gas emissions.

The Democrat-controlled U.S. House of Representatives narrowly approved a climate bill last week, but its prospects are more uncertain in the Senate, where opposition is tougher. [nN25415427] (Reporting by Michael Kahn; editing by Gerard Wynn)