Bears are back but will it last

01 November 2006



The market does to appear to be falling again and again, the combination of falling oil and emissions prices is having a further bearish effect on gas and power. Eventually, Winter demand will kick in and when it does we can expect a small turn upwards to reflect the change in demand and supply.

The market in the usual tradition fell on Tuesday and Wednesday of the week, if the tradition continues it will rise on Thursday and Friday only to be resold again next week. Inevitably the market cannot continue to fall inexorably, but the news of a mild winter fewer supply worries are something which inevitably will cause the market not to rise dramatically. Winter tends to see prices rise, and at some point the rise upwards will come back with players looking to sustain a certain level.

Many buyers will look to secure good prices at £35 and £45 for Summer 07 and Winter 07 respectively, these are levels which we have not seen before and rather than being technical levels they are pschological barriers which if breached will call many buyers to pick up the phone to their traders.

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Protesters at Dicot  

02 November 2006


Greenpeace protesters have broken into Didcot but has had little effect on anything.  read more...

Winter is here....  

03 November 2006


The market is responding to the cold weather but it is not causing any concern and most are determined to concentrate on the prompt and not the longer term.  read more...

Emissions differentials start to widen  

06 November 2006


The carbon market is influencing the energy markets less and less, but be warned it could start to play much more of a role when we know more of what could happen in emissions.  read more...

The market overcomes fears  

07 November 2006


Market remains buoyant but tending to head South still.  read more...

Sustainable development  

08 November 2006


There is no doubt that this report whilst it mentions nuclear is looking seriously at all the other options.  read more...

Scottish Power subject to takeover  

09 November 2006


Market distracted by takeover talks, but in reality it is a little listless and prone to small further falls.  read more...

Oil market pushes power  

10 November 2006


Oil market rises have effected power prices but some of these gains may be offset by the emissions falls next week, could see further bearish pressure.  read more...

Bearish Sentiment continues  

13 November 2006


Bearish news continues to filter into the market as oil emissions and gas all fall. Maybe power might follow in the next couple of days.  read more...

Mergers and Acquisitions  

14 November 2006


The energy markets are changing with players looking to take each other over.  read more...

A day of contradictions  

15 November 2006


Spark spread activity dictates what is happening in the market today. Expectations are that gas is misbehaving and eventaully will fall further.  read more...

The problem with trading forward  

16 November 2006


Market a little lacklustre with players slack to tighten spreads and trading small amounts of spark spreads. Sellers appear to have gone to sleep and the relentless buyers are having to bridge the bid offer spread.  read more...

British Energy Announce results  

17 November 2006


The market is always slow on a Friday but most will be concentrating on the British Energy annoucement and US gas stocks which have pushed oil prices down significantly.  read more...

Market Update- steady but the bulls are back  

20 November 2006


The market has responded to technicals and fundamentals specifically on fuel spreads.  read more...

Bulls start to get grip of market.  

21 November 2006


The prompt is picking up and driving some of the front curve higher.  read more...

Prompt continues to be bashed  

22 November 2006


Prompt continues to be of interest to most players with trading further along the curve limited.  read more...

First step to a UK power Index  

23 November 2006


Power indices are the start to attracting a non-physical market which might well look at developing greater liquidity in this world.  read more...

$ falls could effect power market  

24 November 2006


Some might say that the $ will never effect a localised commodity market such as UK power but they could be wrong.  read more...

Summer seems a long a way off  

27 November 2006


Could the market be waking up to a world where you short the forwards and buy the prompt.  read more...

Summer and Winter get hit by the prompt  

28 November 2006


The market continues to set new lows and players are comfortable to trade sporadically as prices become better.  read more...

Scottish Power and the spaniards  

29 November 2006


Scottish Powers shareholders will be happy with the size of the bid and the fact that it is going through but it is not a good long term investment as debt levels will be high.  read more...


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