During the 19th Century in America a market was set up to trade bear skins. Some of the traders forward sold positions, in fact they sold bear skins which they did not own. This is sometimes referred to as short selling, and if the market is on a donward spiral then short selling is smart as you are selling at a higher price to the one at outcome of delivery. The bear skin jobbers when in full flow would depress a market and hence the reason why a bear market is seen as a decline in prices.
Warm weather weighs heavy on prices
 
06 January 2012
Unseasonably warm weather and European debt crisis fears continued to influence the markets at the start of 2012. While oil did open the year up on the back of strong economic data from both the US and China, it retraced its steps on surprise US stockpile data combined with the Euro debt fears.  
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November 2011 Review
 
02 December 2011
While debt repayment concerns combined with woeful economic indicators continued to be a feature throughout November, supply and demand fundamentals were an obvious driver too. Unseasonably warm weather combined with (and causing) plentiful gas storage meant that UK power and gas markets went into a nose dive.  
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Plunging Prices Impact UK Energy market
 
17 June 2011
Oil markets were described as 'plunging' as fears escalated over the Greek debt crisis. With the dollar/euro exchange rates under pressure oil lost value pulling down NBP gas and UK power prices too.  
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Downward Trend Still in Play
 
13 May 2011
Most contracts in the UK energy markets continued to lose ground this week enforcing the downward trend that has been in play since the start of the month. The Winter 11 contracts closed the week at £57.60MW/h and 68.85p/therm.  
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A Market Correction?
 
08 April 2011
Losses were seen in the UK energy markets this week despite oil gains. This was the first sign that gas was decoupling from oil with suggestions in market implying that the recent gains had been ‘over done.  
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Week on week gains recorded in the UK Gas and Power Markets
 
01 April 2011
While the markets recorded week on week gains – both bearish and bullish days were seen this week. A healthy supply situation saw last week finish on a bearish note and this sentiment was seen at the start of this week. However, Wednesday’s bearish session did not return and Thursday saw contract gains return.  
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UK Power Prices Slip Again
 
10 September 2010
Thin liquidity combined with bearish gas and carbon prices pushed UK Power prices down with Winter 11 recording the greatest loss slipping £0.85/MWh to close the day at £48.40MWh  
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All Quiet....
 
30 July 2010
A very quiet day in the UK energy markets which saw very little traded during the period - hardly surprising given the combination of usual Friday slowdown, holidays, a comfortable system as well it being the last traded day of the month.  
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Natural Gas the one to watch
 
08 March 2010
The power curve ended the week down feeling the pressure from the fuel curves as well as healthy supply situation. Looking forward, the gas market is the one to watch as it continues to dominant the fuel mix accounting for 50% of generating plant.  
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G20 has a lot to answer
 
03 April 2009
The famous $1trillion barrier was reached by the G20 and the markets all rose on the ebullient nature of the meeting, but is it real.  
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A Bearish Gas Market
 
07 November 2008
Lower demand, milder temperatures and strong supplies have helped to fuel bearish sentiment in the prompt gas markets over the week.  
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Market falls on oil.
 
05 June 2008
The market has moved down by approximately £1 across the curve as oil prices finally take their toll on UK power.  
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German demand down 5%
 
20 December 2007
German demand drop so significant that if Europe has followed suit then the need for nuclear and new build could be put on hold.  
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Will the range break
 
23 August 2007
Markets start to look asthough they may break the range but what event will spur the final push through the lows.  
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Hedge funds move out of oil
 
08 August 2007
Oil slides aggressively on the back of hedge fund sellers. The question on traders lips is when will this start to feed into the power market.  
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Prices slide
 
17 July 2007
The gas market has been sold off a little on the back of oil price falls today.  
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Price Slide
 
04 June 2007
Pressure from forward sellers could see the buyers run to the hills.  
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Backwardation and contango
 
20 April 2007
The curve is changing shape this could be a short term thing as players tend to forget the back of the curve as it is less liquid but more often than not it is a fundamental shift in the market next week will tell.  
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Market falls continue
 
19 April 2007
The market is continuing to edge downwards and this is encouraging that worries associated with exceptionally hot Summers are being downplayed. It is interesting to note whether demand rises significantly next week when colder weather is predicted.  
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Market bears return
 
03 April 2007
Falls across most of the market as players attempt to react to new emissions data and see how it translates for next year.  
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The market quiet
 
02 February 2007
The market is now stating that it is close to the bottom, this generally means that there is further to go.  
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Where is the bottom?
 
29 January 2007
The bears are really questioning if the bulls will ever return. The market is due a little correction from the selling spree but how long will it last.  
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Windy day sees lower prices
 
19 January 2007
The market is looking for fundamental signs as to what may happen in the future. Winter 07 might look overpriced when the average day ahead price for January is likely to turn out at sub £30.  
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Traders claim we are at the bottom
 
15 January 2007
The market has suggested that new lows have been reached but traders are often crying wolf and the market is not so low that the players are really hurting.  
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New Year points to falling market
 
02 January 2007
The market conitnues to fall with new lows being set on the last trading day of the year but the future suggests that the bears wll be looking at the fundamental lows when they will start to metamorphise into bulls.  
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Market continues to fall
 
12 December 2006
The market is responding to fundamentals, which are that if it is raining it is not too cold, and so demand is quite steady. Storage is full.  
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Markets, Scots and Transmission
 
05 December 2006
Markets continue their bearish drive, but players are beginning to look to January and February for guidance. A weather annoucement today may also have further bearish pressure on the market.  
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Market collapses on plentiful gas.
 
04 December 2006
The market continues to freefall as players look at the fundmentals the colder it gets the more gas seems to be coming into the market and the more likley that system can cope.  
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The fall continues
 
01 December 2006
The market is falling aggressively as players are determined to sell on low prompt prices.  
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British Energy Announce results
 
17 November 2006
The market is always slow on a Friday but most will be concentrating on the British Energy annoucement and US gas stocks which have pushed oil prices down significantly.  
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Bearish Sentiment continues
 
13 November 2006
Bearish news continues to filter into the market as oil emissions and gas all fall. Maybe power might follow in the next couple of days.  
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Oil market pushes power
 
10 November 2006
Oil market rises have effected power prices but some of these gains may be offset by the emissions falls next week, could see further bearish pressure.  
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Bears are back but will it last?
 
01 November 2006
The market does to appear to be falling again and again, the combination of falling oil and emissions prices is having a further bearish effect on gas and power. Eventually, Winter demand will kick in and when it does we can expect a small turn upwards to reflect the change in demand and supply.  
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Battering seen in markets
 
25 October 2006
Some might argue that the Christmas sales have come early as all markets slid on fundamental data which shows that in mild weather and with plenty of plant available prices tend to fall.  
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Where have all the bulls gone
 
13 October 2006
The market looks stagnant but volatility has risen as it lurches from new lows to £1-£3 higher in two days. This is more volatile than a steady fall.  
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Risk management dichotomy
 
03 October 2006
Risk managers can rest easy when they are short and the market is falling but they will be aware that we are in territory and that correlations and spreads have started to look very different from last year.  
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Dead Cat Bounce
 
29 September 2006
Oil price rise on Opec fears but is it a short lived tradery rumour.... probably because it fits the pyschological and technical processes of all markets.  
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Hedge Funds dominate the market
 
22 September 2006
The market has seen the effects of hedge funds, big players who can move markets when reversing positions, they can also push them too far and the skill in any trader is moving the market but not doing it so unsubtley that the market front runs you. Hedge funds struggle with this due to the volume of trades required to reverse the position.  
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Bottom of the market
 
18 September 2006
The bear run is continuing and this year it is based on fundamentals rather than speculation which makes it more sustained and more longer.  
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Bears continue the run
 
31 August 2006
Oil and gas prices have fallen and plant margin remains plentiful as a result any bullish activity is short lived.  
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Q1 07 dangerously close to breaking £60
 
15 August 2006
The bears are back and the length seen as a necessity by trading houses at the begininng of the year is slowly making its way back into the market. Perhaps the hedge for today is to short British Energy shares.  
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Bearish Sentiment changes fuel fundamentals
 
14 August 2006
The market is reatcing well to the recent oil price rises with a view that margins are helathy enough as it is and that trading can be a way of moving the market rather than just looking at raw fundamental demand and supply.  
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Cheaper than a long time
 
09 August 2006
The market looks reasonably priced and this is where opportunities could present themselves, but it looks like there are further falls to come.  
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Coolness descends on prices
 
31 July 2006
Prices fall on cool weather and players are keen to try and capitalise on this fall and so it will be interesting to see whether prices stay here for long.  
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Winter 06- The technicals
 
25 July 2006
Winter 06 dropping closer and closer to the £60 level and there is a definitely feeling that this could lead to a new world where Winter 06 has a big number starting with a 5 rather than a 6.  
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