Daily Energy Market Report Monday 17th September 2018

Daily Energy Market Report Monday 17th September 2018

 

A bullish start to the week for UK gas market, as strength in carbon drives the NBP upwards.

On Friday, carbon EUA’s rose 5% from its previous close to around €20.00/tonne, the Dec – 18 contract has since risen around €0.8/tonne this morning.

Gas prices rise as stronger carbon prices help make gas fired power generation more competitive versus coal.

The system sits at 6.8mcm long with the UKCS being our main source of supply at 78.8mcm.

Norwegian flows along the Langeled pipeline are at 29.4mcm.

We are also withdrawing from storage at a rate of 9mcm.

On the demand side, LDZ is at 65.3mcm, gas for power demand is at 38.4mcm and we are exporting 26.5mcm to the continent along the IUK.

On temperatures, it is a mild start to this week with good wind production; healthy wind is also set to continue into the later part of the week courtesy of strong westerly flow over the Atlantic.

At the weekend temperatures will drop back, to near seasonal normal and LDZ demand should increase as a result.

Oil prices remained relatively flat but Brent has since ticked up this morning to around $78.62/bbl.

Supply fears surrounding the impending Iranian sanctions continue to outweigh the concerns surround the trade war between the US and China.

The US is poised to impose additional tariffs on China, raising concerns about the potential for slower growth in oil consumption.

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