A recent report by the Energy Contract Consultancy has stated that the short term prospect for gas prices in the UK is very good with the potential for massive over supply. It argues that the demand is likely to stay low and there is significant growth coming from both Norway and from Russia in the continent.

The report also outlines how the retail gas market will be making significant sums of money as wholesale prices have declined far more than the retail prices. There is even a suggestion that arbitrage opportunities between the European mainland and the UK will persist for some time, increasing flows and encouraging a price cap on gas prices.

On the same day one of the dutch exchanges published results of a survey which showed that most traders believe the greatest fundamental influence on power prices is fossil fuel inputs followed by carbon prices, which in turn were followed by weather.