On Friday we saw weekend prices blip up on scorching weather and penalty shoot outs, in reality this risk premia is well justified with many power plant out of action and the hot weather potentially eating into gas and nuclear efficiencies. But we must remember that whilst it is hot it has been much hotter, and this is a test for prompt prices which have risen to £41.00, but it does not look like this is likely to cause the market to fundamentally collpase. In fact if anything it is coping rather well, and this will start to put pressure on Summer 07 and Winter 06. Many players started buying up Winter 06 at the beginning of the year and they will be looking at the funadamentals and seeing all of the day ahead and months being sold in the build up to the product breaking down and will start to want to off-load alot of this length.

For once if buyers can hold their nerve and wait for the sellers to drop their volume in the market we could see the break on the £59 trend and move for Winter 06 to drop into the £50-£55 range, if this happens then many buyers will be burned on buying long.