Market Comments (09/09/10): Wednesday’s session saw curve contracts make gains but it is uncertain whether this marked a change in sentiment or whether it was simply a break before prices decrease further. Some believe that the power curve may push lower due to losses we are seeing on the coal market. Nevertheless, the largest increases were seen on contracts from Summer ’11 onwards with Summer ’11 closing £0.34/MWh up at £43.96/MWh and Summer ’12 £0.47/MWh up at £46.91. Gains closer to the curve were smaller with Quarter 4 2010 up by only £0.10/MWh and Winter ’10 making £0.16/MWh gains. Day-ahead baseload prices dropped by £0.57/MWh to £39.76; if the prompt price remains below £40.00/MWh then it is inevitable that October ’10 price will be pulled down. Currently October ’10 contracts are valued at £41.47/MWh. The outlook on the near-prompt is considered bearish by some, owing to the scheduled outage on the UK-Zeebrugge Interconnector from Thursday to 24th September which should see a well supplied spot gas market.

Market Comments (09/09/10): The majority of NBP contracts on Wednesday made back the losses recorded during Tuesday's session. Continued uncertainty over the potential impact of Interconnector maintenance commencing today resulted in the curve trading somewhat erratically. The Day Ahead contract was the only loss maker of the day closing 2.78p/th down to settle at 37.43p/th - closer in line with the Weekend and WDNW contracts. The system was tight throughout yesterday but managed to achieve balance by 17:00 despite strong demand levels of around 230mcm. Despite Karsto processing plant expected to be back online yesterday this had not yet translated to increased Norwegian flows. Langeled and St Fergus Total both were flowing at around 15mcm. LNG send out from South Hook was again strong at around 50mcm. Apart from the front month trading activity was light with market participants hesitant. Winter 10 and Summer 10 both gained around 0.35p/th while gains in general increased further out. Currently demand is down to 210mcm and the system is 10mcm short.