Daily Energy Market Report Friday 12th January 2018
Day on day colder revisions to weather forecasts for the week ahead and the 45 day forecasts for the UK and the Continent, are suggesting that climes will fall below seasonal norms thus supporting higher consumption.
The weather pattern for next week expected to bring strong wind levels which will reduce CCGT demand on the Prompt.
These factors have supported gas prices at the Prompt and Near curve at both the NBP, TTF and peripheral hubs.
This morning we are continuing the theme of the NBP being oversupplied; it has opened 20mcm long and demand has reduced partially driven by immediate temperatures being slightly mild, but also a marginal industrial turndown as we move towards the weekend.
Imports via the IUK are 14mcm lower day on day, MRS sites are only nominated to export 20mcm today however they are only flowing at 10mcm.
Yesterday prices found additional support from a weakened GBP from Brexit rhetoric and a strengthening EUR as ECB minutes were released.
These factors combined with Brent crude trading at 3 year highs over $70/bbl attributed to gains further along forward curves.