A mixed bag this week for prices, with near term gas contracts for this Winter easing back following the Nord Stream 2 suspension, while near term power prices levelled off with some slight downward movement over the last couple of days.

A similar pattern was seen for end of curve prices with gas contracts heading back towards their recent lows. Despite the mixed picture, there is some reason for optimism, the last week has seen the arrival of a drop in temperatures coinciding with another period of weak wind generation – yet by recent standards prices have held reasonably steady.

Temperatures and wind generation are both forecast to return to normal next week and we have 9 LNG cargoes booked between now and 6^th December which will ease the supply demand.

Also putting a lid on price rises is the increase in Covid cases across the continent with Austria going into full national lockdown and bars and restaurants in the Netherlands restricted with working from home advice renewed. This uncertainty is easing demand pressure on prices.