Daily Energy Market Report Thursday 13th September 2018
The UK has opened 6mcm short this morning mainly due to lower Norwegian flows into the UK.
Flows from Norway had not been above 30mcm since mid – August 2018 due to maintenance, but flows had ramped up to 45mcm on Wednesday.
The reduction in flow from Langeled has contributed to short system this morning.
The total demand for the UK is expected to sit at 172mcm today, 5mcm below seasonal norms.
Gas demand for power generation has increased day on day, one of the reasons the total UK demand has lifted.
Oil prices climbed above $80bbl on Wednesday to hit 5-month highs, as the threat of Hurricane Florence in the US puts a risk on supply due to the potential threat to US infrastructure.
The price weakened late in the evening once it was confirmed that the wind levels had reduced.
Oil inventories fell by 5.3million barrels on Wednesday confirmed by the EIA.
The GBP weakened slightly against the Euro on Wednesday as it was confirmed that the Chairman of the Bank of England, Mark Carney had his contract extended by 7 months.
The market was anticipating a longer term and as such, doubts were raised over consistency in the BoE policy following Brexit.