Slightly more than one year after Midwest power prices spiked to$7,500/MWh from $25/MWh, causing suppliers to default on contracts,companies to go out of business and federal regulators to concludeit was a one-time anomaly, the power market did it again.
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Cinergy Cries Force Majeure On Power Deliveries
Slightly more than one year after Midwest power prices spiked to$7,500/MWh from $25/MWh, causing suppliers to default on contracts,companies to go out of business and federal regulators to concludeit was a one-time anomaly, the power market did it again.
Futures Spike Amid Hurricane Fear
The futures market spiked higher Monday in response to thethreat to natural gas supplies in the Gulf of Mexico posed byHurricane Mitch. There was an early buying surge as non-commericaltraders struggled to close out short positions ahead of the rally.However, once the market started its momentum, buying came from allsegments of the market. The November contract settled up 13.4 centsto $2.298.
Fundamentals and Technicals Agree: Futures Higher
The futures market spiked higher in trading Thursday, adding togains posted Wednesday evening as traders pointed to a host ofbullish factors. A “startling storage report,” continuedshort-covering, and a increasing supportive technical picture wereall cited as reasons for the advance. That prompted both theOctober and November contract to 12.5-cent gains, settling at$1.958 and $2.207 respectively.