Daily Energy Market Report Monday 3rd Dec 18. UK gas prices lifted significantly on Monday morning driven by increases in Oil and colder weather forecasts driving the curve.
A brief cold spell midweek has lifted the prompt and near curve as temperatures are expected to fall to 4°C below seasonal average, whilst the far curve has been dragged up by bullish moves in Oil over the weekend.
The UK system has opened balanced this morning, despite Langeled flows dropping below 50mcm.
Total UK demand is below seasonal normal at 262mcm, 8mcm below seasonal normal as mild weather in the UK continues to suppress heating demand.
Low wind generation is keeping the Gas burn for power high, at 62mcm with expectations of low renewables through December.
LNG flows remain high, bolstering supply in the UK market, with LNG nominations at 71.8mcmc, but flowing at 77.7mcm.
Langeled flows have dropped to just 48mcm down from 58 on Friday due to outages on the Troll field and Kollsnes processing plant.
Brent Crude prices have soared overnight climbing from $59.06/bbl. to $61.60 as a 90-day cease between China and the US in the recent trade war has been announced.
This increases the global demand outlook, with China one of the world’s largest Oil consumers.
Further to this, news emerged this morning that OPEC (Due to meet in Vienna on Thursday) would announce further cuts to production for 2019.
Daily Energy Market Report Monday 3rd Dec 18 brought to you by British Utilities