The market with drops in demand saw no reason to be as high as it was, with a £6 drop in Q1 the main product to smashed down. There is no dount that the recent buying up to the new highs has been demand led and pushed on the lack of the system to be able to cope with the increase. Recent news has filtered into the fundamentals that storage is back to full cpacity and that the cold snap is unlikely to return for a couple of weeks, odds on a white Christmas are lengthening and with players having got long on the rise, they are trying to take profits.

Interesting aside is that many of the traders have noted that a small push in the market brings the natural shorts (large end users) rushing down from the hills to trade out their positions and this buying growth moves the market as the vertically integrated players tend to step further and further back. The lesson from this is to think about positioning relative to other market participants. It was a badly kept secret that history suggested going into the market short, and with a different fundamental market to previous Winters, running a short into the Winter was always going to be high risk.