Daily Energy Market Commentary
Thursday 18 May 2017
• UK Gas prices have increased this morning, due to tight system dynamics.
• Cooler temperatures are expected over the weekend, with LDZ consumption expected to reach above seasonal normal levels up until Monday.
• Norwegian flows have not increased as much as originally thought following the return of Orman Lange, keeping the NBP in a short system position.
• Oil prices have ticked up again today, as the fight between production cuts and ample supply rages on.
• UK Power prices are moving in mixed directions this morning.
• Solar levels are set to increase over the weekend, as is wind generation. This is adding downward pressure to the front of the curve.
• As temperatures stay at a milder level today in the UK, this has a positive effect on prices.
• A depreciating Pound against the Euro is providing support for the Gas market, in turn affecting Power as the cost of commodity imports from the continent increases.
• Dutch and French Gas prices have increased this morning across the board. However very minimally from yesterdays close level.
• Very warm temperatures continue in Europe, however we see cooler forecasts for the weekend similar to the UK.
• Norwegian flows to the continent have increased slightly, following the return of Orman Lange. Russian flows have remained at the same levels to previous days.
• Capping gains made from increasing Oil and other drivers, is the strengthening of the Euro.
• Dutch and German Power have mimicked the movements seen on the continental Gas market and have increased across the board.
• Firmer Coal prices have lifted Power prices this morning. Rises in Coal supported by stronger Oil prices and a weaker Dollar.
• Solar and Wind generations forecasts are set to increase over the weekend, potentially capping gains.
• Relating Gas markets have increased this morning, adding support to the curve and helping push prices upwards.