Daily Energy Market Report 12th December 2018. The NBP has opened higher this morning off the back of strength in oil and colder weather.
The prompt is being supported by strong LDZ demand as the UK is set to experience below seasonal normal temperatures towards the back of this week and into the weekend.
Brent is being supported by the ongoing outage at Libya’s biggest oilfield, with local militia occupying the site.
There are also expectation that the OPEC production of 1.2m barrel per day, agreed last week, will stabilise the markets, along with the easing tension surrounding the US/China trade war also supporting prices to the upside.
In other news, GBP has risen slightly this morning off the back of a vote of no confidence in May’s leadership being triggered.
The vote is happening tonight and if May were to lose, it seems likely that the UK’s departure from the European Union will be delayed.
On the system, the UK is oversupplied despite the increase in LDZ demand, with system length sitting around 19.1mcm.
LNG send out is very strong at 61.1mcm and we are withdrawing from storage at a rate of 18.8mcm.
UKCS is healthy and nominating at 71mcm with Langeled also flowing at near capacity at 73.9mcm.
On the demand side, LDZ has risen by around 10mcm day on day.
Gas for power demand has decreased by 8mcm to 65.7mcm.
Daily Energy Market Report 12th December 2018 brought to you by British Utilities