The market picked up this morning on the back of over-selling yesterday and oil inventory announcements in the US which were slightly lower than players had originally predicted. The market looks very keen not to break £30 on the Summer 07 and Q1 07 has ticked up as players feel that if they are short at these levels it is foolish to pick up volume later on when the risks of plant failure and gas supplies and cold snaps are so much greater.

Furthermore, there are few news stories suggesting that Belarus and Georgia are arguing with Russia about gas supplies. Whilst this is not the same as the argument seen last year between Ukraine and Russia it is similar and the EC is likely to try and speed up the the process for the Russians to sign the EC energy charter.