Daily Energy Market Report 18th September 2018
Another bullish open on the NBP today because of continued strength in coal and carbon.
However, we have seen losses through the morning as carbon EUA’s and Brent have dropped off around €0.6/tonne from open.
Oil is in the headlines once again today after Trump imposes $200bn of new import tariffs on Chinese goods.
As a result, oil fell overnight to around $77.60/bbl. but has since spiked to around $79.00/bbl. after Saudi Arabia stated they were comfortable with oil prices rising above $80/bbl.
The system is marginally long with LDZ demand dropping around 8mcm day on day to 62.3mcm.
Gas for power demand has also decreased with the increase in wind generation as Storm Helene hits the UK today.
Warmer weather over the next couple of days will continue to add pressure to the front of the NBP curve and reduce the need for MRS withdrawals.
Early next week we expect to see cooler weather before returning above seasonal normal for the rest of the week.