Yesterday further selling in October and Sepetembe was halted as players realised that the downside was pretty limited. The narrowing between Summer 07 and Winter 06 also stopped, with Winter 06 trading up a little to around £56.20 (it is bid this morning at £56.25) and Summer 07 traded up again from £42.55 to £42.75.

So with these lows being breached are we back into a bull run. Everything suggests not but what we are away of is that the bear run will be a steady slow process. There will be days where the market blips up, if only because those buyers out there think that the levels are so cheap. But if the buyers can maintain a steady trickle then the maket should fall more rapidly to reflect the overall demand and supply positions for the coming seasons.

Perhaps the next month to be hit by the bears will be November in comparison to last year it looks very cheap but last year we had a cold snap which was the start of the icy winter, some plant was not back and gas supplies were being halted come into the UK. If one strips this out it looks expensive particularly if you compare the levels relative to where the October is trading with a spread at £12 this is well worth selling. (Buy Oct and Sell Nov)