Daily Energy Market Report Friday 1st June 2018
Similar to yesterday and much of this week warm temperatures and falling demand is reducing LDZ consumption below seasonal normal levels, however some days next week are expected to turn slightly cooler.
Power burn remains bullish as wind and solar generation are under performing.
Milder climes next week is expected to increase wind generation.
The NTS has opened slightly long this morning with demand currently 36mcm below seasonal normal levels, as previously mentioned CCGT demand remains strong due to poor renewables. IUK exports are down day – on day with only 4mcm being exported to Belgium.
Due to further NCS, outages MRS sites are withdrawing 3mcm of gas and LNG send – out has increased 2mcm over its nomination to help balance the system.
Prices at the front of the forward curve have taken direction from a tight system as outages continue to provide support.
Brent remains strong assisted by losses on the US Dollar and sentiment whether OPEC will end the production cap; however, WTI crude posted losses once more as US production is increasing, widening its spread to a three – year low versus Brent Crude.
Recent losses on EU ETS contracts has provided filtered into the curve with contributing factors being a weakened EUR/USD combined with a bearish energy complex.