For a specific product recommendation based on risk tolerance and time horizon please contact our Structuring Desk at:

E-mail: markets@neas.dk

Phone.: +45 9939 5949

Yesterday, the market rose in the morning. But weather forecasts predicting warmer wetter and a weak German market changed this trend and the market ended up falling marginally. Today, weather forecasts maintain warmer and wetter trends, so we expect a falling market.

German prices declined, yesterday. Particularly contracts with short time to delivery saw substantial declines, while contracts a little further out on the curve only saw limited decrease. The latest weather forecasts are warmer, so it is expected that the market will fall today. Short-term contracts will fall again today.

Weather forecasts are finding their foothold in a slightly warmer and wetter weather scenario, giving a downward reaction in the market. It is expected that the milder tendencies will have an effect on the entire curve - but mostly on contracts with the shortest time to delivery.

The hydro balance is still reasonable and rose again yesterday by 0.5 TWh to 2.5 TWh yesterday.

The natural gas market has resolved its short-term supply problems which have characterized the market for some time in this cold weather. The contracts with longer delivery swung back and forth and did not really have a clear sentiment.

The oil market rose yesterday on the basis of a stronger euro, reinforced by a general optimism about the Greek economy. On the other hand, it appears that the oil market is well supplied, which helps to pull the market down. At the same time, there are new and a little sharper demands on Greece from the EU after yesterday's meeting. This may prove problematic for the collision government in Greece - which also pulls in a downward direction today.

The carbon emissions market traded almost neutral in yesterday´'s session, and starts marginally down today.