The past week was a mixed bag for gas and power contracts.

They have both continued to ease slightly to beginning of Sept levels. Mild weather forecasts and much improved wind generation have eased gas demand. North Sea production remains at near capacity. We also have more LNG cargoes heading to Northwest Europe.

It is reported that Russian gas storage levels are now at 97% – indicating that they should hopefully soon nominate the extra flows to Europe, or they may just curb production. Let’s hope for the nomination.
The volatility has reduced significantly and with the panic buying mostly over we will start to see a continued cautious easing of prices. However, we would expect to see prices carrying huge risk premiums for a while still.