A contango market is when the front end (prompt) is lower in price than the back end of the curve. For example if Summer 06 is at £45/MWh and Summer 10 is at £65/MWh then the market is in contango. The opposite of contango is backwardation.
Bearish Gas Market
The short system seen during the week provided little support in a bearish market. read more...
04 September 2009
The short system seen during the week provided little support in a bearish market. read more...
Should I buy long term power contracts?
With a market in contango, should the customer steer clear of long term contracts? Probably not.. read more...
14 August 2009
With a market in contango, should the customer steer clear of long term contracts? Probably not.. read more...
Summers Lack Shape
Oil price volatility, credit constraints and the Lehman collapse has all badly affected liquidity further out on the gas curve. read more...
27 October 2008
Oil price volatility, credit constraints and the Lehman collapse has all badly affected liquidity further out on the gas curve. read more...
Not a Single Record in Sight
Comfortable margins on the system as well as a Bank Holiday helped to minimise the gains recorded in the UK Power market on Friday. read more...
27 May 2008
Comfortable margins on the system as well as a Bank Holiday helped to minimise the gains recorded in the UK Power market on Friday. read more...
Q4 v Q1 Future (Gas)
Spreads sometimes show how markets can change, and this gas spread is an interesting one to analyse. read more...
04 February 2008
Spreads sometimes show how markets can change, and this gas spread is an interesting one to analyse. read more...
Ernst and Young Reports states gas reliance by 2025
Ernst Young think that gas is where the growth is. Powerisk disagrees and thinks that the future is in coal this where the growth in the technology is. read more...
22 January 2008
Ernst Young think that gas is where the growth is. Powerisk disagrees and thinks that the future is in coal this where the growth in the technology is. read more...
Power- the story so far.......
Power prices continue to look for some form of direction and eventually traing managers will ask whether their traders are taking enough risks. read more...
27 April 2007
Power prices continue to look for some form of direction and eventually traing managers will ask whether their traders are taking enough risks. read more...
Short term still influencing long term
The emissions market is still having a significant effect on the forward curve as players are still happy to pay some premiums associated with buying forward. read more...
17 April 2007
The emissions market is still having a significant effect on the forward curve as players are still happy to pay some premiums associated with buying forward. read more...
Market falls on a Friday
Market corrects again and volatility returns to the market good for traders but a lack of trend is causing some to think carefully about what they do. read more...
02 March 2007
Market corrects again and volatility returns to the market good for traders but a lack of trend is causing some to think carefully about what they do. read more...
Contango Markets
The FT has written a good article on commodity contango. read more...
01 March 2007
The FT has written a good article on commodity contango. read more...
Summers and Winters not aligned.
The summer and winters are not behaving normally, but alot of this is due to prompt prices and not having to fill up storage in Summer 2007. read more...
01 February 2007
The summer and winters are not behaving normally, but alot of this is due to prompt prices and not having to fill up storage in Summer 2007. read more...
Emissions differentials start to widen
The carbon market is influencing the energy markets less and less, but be warned it could start to play much more of a role when we know more of what could happen in emissions. read more...
06 November 2006
The carbon market is influencing the energy markets less and less, but be warned it could start to play much more of a role when we know more of what could happen in emissions. read more...
Contango or Backwardation
The emissions market has not only collapsed it has also switched from being in backwardation to being in contango. read more...
02 May 2006
The emissions market has not only collapsed it has also switched from being in backwardation to being in contango. read more...
Long Term trading decisions
Long dated trading decisions lose focus as players concentrate on the prompt and settling Summer 06. read more...
13 February 2006
Long dated trading decisions lose focus as players concentrate on the prompt and settling Summer 06. read more...
Back end of the curve attracts interest
The bulls buy up back end of the curve, as sometimes it is difficult to forget the rises seen in 2005. read more...
11 January 2006
The bulls buy up back end of the curve, as sometimes it is difficult to forget the rises seen in 2005. read more...
Security of supply expected to dominate 2006
A year of investment and short term uncertaintity ahead of us. Customers have to be more bold at making decisions and placing bids in the market. This will give them confidence and the market liquidity and stability. This allows growth in options markets and allows the market to develop. read more...
04 January 2006
A year of investment and short term uncertaintity ahead of us. Customers have to be more bold at making decisions and placing bids in the market. This will give them confidence and the market liquidity and stability. This allows growth in options markets and allows the market to develop. read more...
Prospect of cold run up to Christmas keeps prices high.
Gas, emissions demand and power all up on fundamentals driven by the cold snap. read more...
14 December 2005
Gas, emissions demand and power all up on fundamentals driven by the cold snap. read more...
The bearish sentiment continues
Oil is reacting to the Hurricane, by the time the effects reach a gas and power market it is just huff and puff. read more...
22 September 2005
Oil is reacting to the Hurricane, by the time the effects reach a gas and power market it is just huff and puff. read more...
How much flexible purchasing can I do?
Flexibility is no pannacea, and does need some careful management and input at the beginning. read more...
30 August 2005
Flexibility is no pannacea, and does need some careful management and input at the beginning. read more...
History of Oil
Contango - Is when the front end of the market is trading at a discount to the back end. It is more natural for markets to be in backwardation. Power markets being the exception to the rule. read more...
30 June 2005
Contango - Is when the front end of the market is trading at a discount to the back end. It is more natural for markets to be in backwardation. Power markets being the exception to the rule. read more...
Prompt Dichotomy
Contango causing large customers to manage their own risk. read more...
08 June 2005
Contango causing large customers to manage their own risk. read more...
Buying Forward may not be at the best price.
Sleeping easy but at what price. read more...
06 May 2005
Sleeping easy but at what price. read more...
UK Government Faces legal challenge over FiT cuts
Friends of the Earth are seeking a judicial review following DECCs failure to amend its plans to significantly cut the current Feed-in-Tariffs. This follows another legal challenge that has been brought by solar power developer Solarcentury. read more...
14 November 2011
Friends of the Earth are seeking a judicial review following DECCs failure to amend its plans to significantly cut the current Feed-in-Tariffs. This follows another legal challenge that has been brought by solar power developer Solarcentury. read more...
Italy draws attention
Greece will be pleased to be out of the spotlight as focus switches to Italy. Interest rates on Italian Bonds have risen above 7% - the level which caused Ireland and Portugal to go looking for help. read more...
11 November 2011
Greece will be pleased to be out of the spotlight as focus switches to Italy. Interest rates on Italian Bonds have risen above 7% - the level which caused Ireland and Portugal to go looking for help. read more...
Market Responds Positively to Greek Coalition Government
Commodity prices strengthen on coalition Government news from Greece. Third day of gains in the oil markets helping to fuel other energy commoditities. read more...
07 November 2011
Commodity prices strengthen on coalition Government news from Greece. Third day of gains in the oil markets helping to fuel other energy commoditities. read more...
Powerisk Online tools and services.
Click here to login
Click here to login
Powerisk glossary of power terminology.
Click here for glossary
Click here for glossary
