Demand Destruction helps squeeze the Prompt

25 November 2008

The front end of the curve came under pressure from all directions. Softer coal and gas markets fed in as well as continuing 'demand destruction'.

The front end of the curve came under pressure from all directions. Softer coal and gas markets fed in as well as continuing 'demand destruction'. With Industrial production under increasing pressure, it seems that traded power markets are continuing to factor in the impact. Further out, the focus came from the oil markets which have shed considerably value in recent days trading under the $50/bbl mark, last seen in mid-2005, to hit levels of $48/bbl. Summer '09 Baseload felt the pressure trading down to £47/MWh, although gains of $6/bbl seen in the oil markets later on helped to give Summer '09 some support.


Oil  Industry 

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