Daily Energy Market Report Friday 20th April 2018
The UK system opened approximately 20mcm short on Friday morning, with demand ticking to 192mcm, up 13mcm from Thursday’s level.
The figure remains below seasonal normal demand but UK gas prices have opened up strongly, with prices increasing.
A number of Norwegian outages, which are reducing availability with Kollsnes offline until 27th April, restricting 18.5mcm, has compounded the short system and an unnamed field is to be unavailable all summer taking 20mcm offline.
The prompt curve has opened strong this morning as Troll outage, which began last night, is taking 28mcm offline, which is expected to finish today.
Norwegian flows are significantly reduced, helping to support the curve, as flows have dropped to just 19mcm, a difference of ~50mcm from earlier this month.
There has been weakness on the GBP over the course of Thursday and into Friday on the back of cautious comments from the Bank of England’s Governor Mark Carney.
There had been expectations of an interest rate hike but comments seemed to cool this on Thursday leading to a significant fall in the Sterling.
The exchange had climbed up to 1.1590 this week, however currently sits at 1.1402.
Oil remains strong, priced at $73.80 with OPEC officials meeting in Jeddah today.
No policy is expected to be agreed upon, but intentions of an extended production cut may be hinted at. This is one to watch today