The Energy Markets are still trading with the banks including Lehman Brothers, the 4th largest investment bank in the US who is struggling to shore up its position following its significant sub-prime related losses. Although there are rumours of credit lines with the bank being cut, no rumours have been confirmed. Lehman Brothers has traditionally been a keen investor in energy but it has been notably less active this week. In reality, the number of ‘bad’ players so far as credit goes is no worse than 6 months ago but trading is more difficult than 12 months ago. This is due to credit - but credit squeezes as a result of volatility and historically high prices. Some players – notably utilities and some producers are also being more risk adverse. You can be sure that several discussions will be taking place on a regular basis between the trading desks and the credit departments with all parties having their own targets and drivers.