The day ahead continued to trade at the barmy level of £27, this forced traders to re think buying February at £35.50 and caused many to sell it down aggressively. It is now trading at £30 and many thought that these levels would be unprecedented. (Do not forget that February has been trading at £80 in March last year)

The fall in the day ahead impacted on the rest of the curve with Winter 07 clattering through £40 kast week the selling continued further with sellers still around at £38 with several trades being seen lower at £37. Summer 07 has continued to stay buoyant with trading settling around the mid £28 mark. Given that March is trading at low £30's this makes Summer look expensive and is likely to see many question whether the market is really at its fundamental low, or whether as usual the gas players will look to unload gas at the point of delivery and that a day ahead strategy is the best way of dealing with Summer 07.