Daily Energy Market Report Monday 10th September 2018
The UK opened with a short system, just 1.6mcm short but quickly balanced.
The total demand for the UK is 150mcm today, with seasonal normal at 175mcm but poor supply into the UK left an undersupplied system on open.
Flows from Norway remain low at just 14mcm, with an unexpected outage impacted Bacton on Friday now corrected.
Flows in St Fergus are expected to remain low for the coming week as maintenance continues across parts of Europe.
Oil prices have lifted upwards over the weekend, climbing to $77.86 as US drilling rig count decreased and results show that India, Japan and South Korea (Iran’s largest Oil customers) have started to cut back from Iranian supply.
The tighter market conditions continue to put fear in the market when US sanctions begin on 4th November.
EUA prices have increased significantly over the weekend climbing over €4 from Friday lunch.
December 2018 EUA has lifted above €25.00 this morning, priced at €21.47 on Friday lunch.
This continues to drive the back end of the curve.
European storage levels remain a big driver on price, with results showing that European storage levels are the lowest they have been at this time of year for the last 5 years.