Bulls reappear

18 December 2006

The market has ticked up marginally on Friday and today with some early seling in the month of January but Winter and Summer or the non-movers.

The market rose today and on Friday mainly on fears of cold weather this week, more importantly players know that this will be a quiet week and so will want to mange volumes carefully for compliance rather than trading. There is a feeling that Summer 07 will have significant resistance at £30 and Winter 07 is highly unlikely to trade below £40 unless players see significant falls in the dayahead.

We have now seen a distinct flattening of the curve with a £10 differential between Summer and Winter this has been significantly larger but it is apparent the possibilities of a squeeze in demand and supply are just as likely to happen in the Summer as the Winter.


Bull Market  Forward Curve  Weather 

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