Just as if fundamentals were being discounted within the market traders came back and sold into the buying strength. The Winter started off at £39.50 and traded down to £38, the Summer similarly saw buyers in the morning which in turn caused some sellers to materialise and the market closed down £1.50.

Much of this fall was on the back of greater stability in all markets the stock market and the oil and gas market. Players continue to look at the short term and prompt and see some low numbers and feel it is hard to justify spending money on buying forward. In short the level of contango whilst good is not necessarily going to march on up inexorably.

Players see that many of the buyers are prepared to risk not hedging forward. The sellers on the other hand must sell forward partly because there are fewer of them and partly because their risk managers tend to be more keen for them to have secured volume. This means that the likes of BE when they see a big rise like the one we have just had, will quickly become aggressive sellers.