As the markets start to wind down for Christmas the price stays relatively high. Met forecasts of the coldest winter ever do not help the price fall lower.
Power and Gas prices ended the day slightly down on yesterday. The volume of trading was very small partly due toa party and partly due to the traders not wishing to take exposure which may damage a bonus already in the bag. Many traders are incentivised on their current P&L and this is often marked to market. As a result a non flat position can fluctuate radically in this type of market, and so trading is limited to flattening positions.
Interestingly there was more interest in Summer 06 which has been less volatile, and so risk limits are probably more reasonable. Traders appear somewhat divided on where this market is heading, with an aggressive buy at £39.90 in the morning followed by an aggressive sell in the afternoon at £39.40. This means that the buyer of the first has automatically seen an MtM loss of £44k in half a day. But this is less risky than a Winter 06 trade which can move by up to £180k in a day (£2 movement on a standard lot size of deal).
05 March 2007
The market continues to fall but not in the same dramatic way it rose this time last week. read more...
28 February 2007
The market is definitely in a state of flux with some players suggesting that a bull run is imminent but others hint that this is a flash in the pan. Everyone agrees that it is volatility which is returning. read more...
06 December 2006
Banks are looking to expand and grow in the commodities markets. read more...
30 August 2006
Watch the spreads this is where the money is being made and with volatility reducing it is no surprise that players are beginning to look at the margins and pricing these more accurately. Competition is back and beginning to bite. read more...
21 March 2006
Volatility is a great measure for risk models, and all traders will be aware of it even though some do not model or trade it. But sometimes even volatility has to be handled carefully. read more...
November 2011 Review
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. read more...
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. read more...
Prepare for the clash of OPEC & IEA
With less than a month to go until OPEC meets, the statements are beginning to fly: OPEC believe the oil market looks balanced while the IEA again are saying that high oil prices could harm fragile global economic growth. Let the battle begin! read more...
23 November 2011
With less than a month to go until OPEC meets, the statements are beginning to fly: OPEC believe the oil market looks balanced while the IEA again are saying that high oil prices could harm fragile global economic growth. Let the battle begin! read more...
Markets Still Jittery
Most markets reported further losses today on the back of underlying nerves about the ability of both Europe and the US to repay their debts. Oil, commodities and equities all reported losses. read more...
21 November 2011
Most markets reported further losses today on the back of underlying nerves about the ability of both Europe and the US to repay their debts. Oil, commodities and equities all reported losses. read more...
Turmoil returns on Greek Announcement
Following last weeks announcement that the eurozone leaders had reached an agreement on a Greek bailout - one that would see banks take a 50% hit on their holdings of Greek debt, the Greek Prime Minister made his own shocking announcement that he plans to hold a referendum on the matter. The Markets tumble in response. read more...
01 November 2011
Following last weeks announcement that the eurozone leaders had reached an agreement on a Greek bailout - one that would see banks take a 50% hit on their holdings of Greek debt, the Greek Prime Minister made his own shocking announcement that he plans to hold a referendum on the matter. The Markets tumble in response. read more...
Eurozone Debt Deal Announced
After prolonged discussions and late night talks, European leaders have announced a agreement on a a Eurozone debt deal. But will the devil be in the detail? read more...
27 October 2011
After prolonged discussions and late night talks, European leaders have announced a agreement on a a Eurozone debt deal. But will the devil be in the detail? read more...
New White Paper highlights need for Energy Risk Management
Yesterday, npower launched its new white paper, commissioned from the London School of Economics on Energy Risk Management for UK business. The paper comes on the back of research that suggests that UK businesses now feel that energy presents a higher level of risk to their business than health and safety and security issues. But what should businesses be doing to manage the risks? read more...
11 November 2010
Yesterday, npower launched its new white paper, commissioned from the London School of Economics on Energy Risk Management for UK business. The paper comes on the back of research that suggests that UK businesses now feel that energy presents a higher level of risk to their business than health and safety and security issues. But what should businesses be doing to manage the risks? read more...
Night Night Power Market!
The market seems warm and cosy (aka stable with low volatility) - but wait until the players return in September! read more...
07 August 2009
The market seems warm and cosy (aka stable with low volatility) - but wait until the players return in September! read more...
An options strategy to suit.
Options are creaping into flexible contracts and this is a good thing as they can provide insurance, but in reality, often they appear to be given away, but look carefully and what you are giving away in return. read more...
31 October 2007
Options are creaping into flexible contracts and this is a good thing as they can provide insurance, but in reality, often they appear to be given away, but look carefully and what you are giving away in return. read more...
Summary of the week.
The market continues to baffle as players gear up for the winter read more...
28 September 2007
The market continues to baffle as players gear up for the winter read more...
What a volatile week!
Market moves for next week could be very interesting. read more...
21 September 2007
Market moves for next week could be very interesting. read more...
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