The key driver for both gas and power this week is temperature.
In contrast to last week, this week’s temperature is forecast to be above the seasonal average. This is likely to depress gas and power demand, according to Inenco’s Y Report.
A recent lack of LNG has been pushing prices higher, although an expected cargo mid-week should increase supply over the short term.
Centrica has announced Rough storage will be ready for withdrawals by the 9th of December, which will provide more security of supply.
The main power driver in the last few weeks has been the French nuclear outages, which are set to continue for the rest of the month. The UK has been exporting power to help it cope.
OPEC and Russia have agreed to cut production by 1.2 million barrels a day and 300,000 barrels a day respectively.
Energy Trader Dorian Lucas said: “Customers looking to place a fixed price contract should treat this recent downturn in the market as an opportunity to get into the marketplace and get that contract fixed.
“In terms of flexible contracts, again it’s down to attitude to risk. If we look at the Q1 period, we’re actually seeing prices come off quite strongly and there is potential for further losses there but again at this point in time it would be quite a risky option to unlock into that market.”