European carbon emissions futures drifted down by 1 percent on Thursday as a bearish economic environment weighed on prices, traders said.

EU Allowances for December delivery were down 16 cents or 1.11 percent at 14.24 euros a tonne at 1258 GMT. Volume was heavier than of late with 6,383 lots traded.

“Everything is down, which doesn’t give much support to carbon,” an emissions trader said.

Traders said earlier that prices were likely to trade in a 20 cent range on Wednesday. Some see 14.20 euros, or the 14-day moving average, as a good level at which to buy back EUAs.

If prices fell below that, the 200-day moving average of 14.03 euros would be the next support level.

Meanwhile, open interest has fallen by 2,275 lots to 163,617 from 165,892.

“Open interest continues to drop while the price decreases, which is consistent with liquidating long positions,” another trader said.

German Calendar 2011 baseload power on the EEX was down 53 cents or 1.05 percent to 49.99 euros per megawatt hour.

Oil slid on Thursday to around $77 a barrel on Thursday, heading for a third straight session of losses, on lingering doubts over the outlook for fuel demand in the world’s biggest energy consumers.

Financial markets regained some composure on Thursday after the previous session’s broad selloff of riskier assets, with European shares inching up but the euro hurt by new worries about some of its weaker member economies.

U.N.-backed certified emissions reductions were down 16 cents or 1.3 percent at 12.12 euros a tonne, setting the EUA-CER spread at 2.12 euros. (Reporting by Nina Chestney; Editing by Alison Birrane)