Finally the news that all the shorts have been waiting for power prices, fell by almost as much as 6% across the curve, as fundamentals across the curve fell. Carbon sliding first and then a big sell off in the gas market. There is no doubt that further up surges were unlikely with the market looking very overbought. The new highs seen on Tuesday were designed to flush out the last of the buyers, and those with strong nerves will be looking to wait for the market to drop further. In reality there are some who will still want to buy, but these falls should not see a massive return of buying interest.

Oil has fallen, consistently over the last week and this was a driver for gas to turn in a downward direction. Furthermore with prompt prices getting soft, the opportunity for players to buy prompt and roll forward would have been too good to miss and some will pay the cashflow and storage costs and lock in sales in January at over £1 a could return on a 23p/therm buy.