February History has shown that if ever the bears are at their most aggressive then it is now. Fundamentals also suggest that this year looks likely to be less volatile than last year. The very nature, of traders developing experience and not being panicking into trading lowers volatility.
History shows that February is normally a bearish month, with over buying through the Winter creating an uncomfortable position for the longs which in February they feel they need to off load. In a week March 06 has fallen £7, and this fall is small in comparison to the £23 drop seen since the beginning of December. Powerisk had mentioned March in previous news articles ("Does the spark spread ever breakdown?" , "March Moves Down - but we knew it would.")
From a trading point of view, this time of year traditionally is not a bad time to cover shorts. Or even get long. Picking market bottoms is never easy, and one would always protect against doing one large trade, to cover a complete position, but perhaps the risk management view, would be to cover some upward movements by hedging some exposure now. This is prudent, it will not be the bottom of the market but it is closer to a fundamental low than any of the highs we have seen.
20 October 2005
Bears back on mild weather low gas demand and a correction from the heavy buying seen in the previous two months. read more...
15 August 2005
Winter ready to go bed as players start to close out positions, as most are long this means a managed a sell off. Buyers can retreat carefully. read more...
26 July 2005
Curve traders, spark traders and the prompt boys battle it out for some reasonable semblance of order. read more...
14 July 2005
Huge losses seen in all commodity markets as power falls £13.20/MWh in a day. Over a 20% fall in one day. read more...
04 July 2005
British Energy share options worth gold dust as power prices go supersonic. read more...
Warm weather weighs heavy on prices
Unseasonably warm weather and European debt crisis fears continued to influence the markets at the start of 2012. While oil did open the year up on the back of strong economic data from both the US and China, it retraced its steps on surprise US stockpile data combined with the Euro debt fears. read more...
06 January 2012
Unseasonably warm weather and European debt crisis fears continued to influence the markets at the start of 2012. While oil did open the year up on the back of strong economic data from both the US and China, it retraced its steps on surprise US stockpile data combined with the Euro debt fears. 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...
Plunging Prices Impact UK Energy market
Oil markets were described as 'plunging' as fears escalated over the Greek debt crisis. With the dollar/euro exchange rates under pressure oil lost value pulling down NBP gas and UK power prices too. read more...
17 June 2011
Oil markets were described as 'plunging' as fears escalated over the Greek debt crisis. With the dollar/euro exchange rates under pressure oil lost value pulling down NBP gas and UK power prices too. read more...
Downward Trend Still in Play
Most contracts in the UK energy markets continued to lose ground this week enforcing the downward trend that has been in play since the start of the month. The Winter 11 contracts closed the week at £57.60MW/h and 68.85p/therm. read more...
13 May 2011
Most contracts in the UK energy markets continued to lose ground this week enforcing the downward trend that has been in play since the start of the month. The Winter 11 contracts closed the week at £57.60MW/h and 68.85p/therm. read more...
A Market Correction?
Losses were seen in the UK energy markets this week despite oil gains. This was the first sign that gas was decoupling from oil with suggestions in market implying that the recent gains had been ‘over done. read more...
08 April 2011
Losses were seen in the UK energy markets this week despite oil gains. This was the first sign that gas was decoupling from oil with suggestions in market implying that the recent gains had been ‘over done. read more...
Powerisk Receives-Independent Energy Consultant Commendation
At the recent Energy ‘Buying and Supplying’ Excellence Awards, Powerisk received a Commendation in the Independent Energy Consultant of the Year category. The awards, held at The Langham Hotel in London, were designed to showcase and recognise the very best practises in the energy supply and procurement arena with consideration given to all those involved in the process. read more...
29 November 2010
At the recent Energy ‘Buying and Supplying’ Excellence Awards, Powerisk received a Commendation in the Independent Energy Consultant of the Year category. The awards, held at The Langham Hotel in London, were designed to showcase and recognise the very best practises in the energy supply and procurement arena with consideration given to all those involved in the process. 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...
Suddenly it's "British Petroleum"
A name not used in a very long time, but suddenly the US are quick to refer to BP by its old name of British Petroleum, hoping perhaps to distance itself from blame regarding the disastrous oil spill in the Gulf of Mexico. But as the US announces a criminal investigation and as BP shares suffer further should the British economy concern itself? read more...
02 June 2010
A name not used in a very long time, but suddenly the US are quick to refer to BP by its old name of British Petroleum, hoping perhaps to distance itself from blame regarding the disastrous oil spill in the Gulf of Mexico. But as the US announces a criminal investigation and as BP shares suffer further should the British economy concern itself? read more...
Why is the Dollar Important?
With LNG now having a place in the UK gas market, the dollar will influence our energy prices. read more...
25 September 2009
With LNG now having a place in the UK gas market, the dollar will influence our energy prices. read more...
Recent oil price rises will not last
The recent oil price increase seen last week has already started to fall and Powerisk explains why it will continue to stall. read more...
25 March 2009
The recent oil price increase seen last week has already started to fall and Powerisk explains why it will continue to stall. 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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