Markets

Market Overview - Trading Day Wednesday 22nd February 2012

SPOT Market

Prompt gas markets rose slightly on Wednesday the main driving force for this was exports to the Continent where France’s gas storage was below average after the resent cold spell and Rough storage being closed between 2-4pm for maintenance.  Prompt power markets also rose on Wednesday supported by the increase in the gas price at Hinkley Point B being closed on Thursday and Friday for routine maintenance.   

Forward Market

The forward curve on both gas and Power rose on Wednesday.  The rise was supported by the increase in Crude Oil with Oil contracts passing $122bbl.  On the power curve summer months outpaced winter months causing the spread between seasons to narrow. 

TODAY’S UPDATE – Thursday 23rd February 2012

Day ahead Power has been trading slightly higher this morning, with a slightly more comfortable system and forecasts for plenty of wind output is expected to push the prompt price down throughout the day.  The gas system has opened slightly short this morning however with healthy BBL imports and Langeled flows should help to balance the system.  The prompt gas price opened slightly lower this morning with a lower demand expected the forward curve to continue rising this morning supported by the Crude Oil price that opened above $123bbl this morning.  The weather forecast is expected to be warmer showing above SNT weather for the end of February.