The market this week began with some strength but has again weakened for all of the usual reasons. Mild weather, low demand and bearish peripheral commodities such as oil, coal and carbon. Market falls yesterday and into today have been further exacerbated by confidence in temperatures remaining above seasonal normal for the next five days at least, in both the UK and continental Europe. Also an unplanned outage at Kollsnes processing plant had been resolved. The biggest losses have been seen on the spot Day-Ahead markets for both gas and power with the rest of the farther delivery curve reacting in sympathy.
The recent volatility has allowed Inspired Energy to sell and re-buy volumes for future months at lower levels and further decrease the weighted average of the MCM position.
More of the same if fundamentals stay as-is. Further significant falls are unlikely whilst the forward curve is at spot price levels. March is the last official winter month in energy trading and the timespan is now quite short for any prolonged cold spell.