Daily Energy Market Report 11th Oct 18
Similar to yesterday bearish movement at the Prompt is dragging down the near curve, seeing contracts at the NBP and TTF falling driven by unseasonably warm temperatures and high wind curtailing demand.
The aforementioned demand at the NBP has fallen due to temperatures being three – six degrees Celsius above normal for the rest of this week and healthy wind output thus easing CCGT generation.
With little IUK exports, booked high MRS injections are taking place to balance the system.
Contracts along the curve have shifted downwards driven by the front but also contributed by a large sell – off in EUAs and API2 coal; participants have also paid close attention to oil futures shedding 2% yesterday as US inventories have risen by 9.7mbls, more than four times the forecasted build.
Downward movement has been limited as many US refineries are closed due to Hurricane Michael in the USA and pending Iranian sanctions.
Yesterday’s speech by the IMF cut forecasts for global growth in 2018 into 2019 raising concerns for reduced oil demand.
Daily Energy Market Report 11th Oct 18 brought to you by British Utilities