CONSULTANTS

Volatility continues to define day to day price action at the front of the gas and power curves

Last week saw pronounced volatility with wide day to day trading ranges as bulls and bears fought. Overall the bears won with many contracts dumping value week on week.

Last week saw mass volatility and large traded ranges across commodity markets, but particularly so in gas.

Last week saw gains across the complex, especially so in gas markets where front month pushed over 9p/therm higher than the prior week’s settlement.

Another bullish week across the energy complex with fundamentals unchanged as renewable output remains lower, continued cooler temperatures, and a strong Asian LNG bid all mean that injection season has faltered.

Last week saw gas and power prices lifted along the curve as attention to storage injections re-ignited with temperatures across the UK dropping off, halting the injections we had seen whilst temperatures were often in the mid-20°Cs.