Daily Energy Market Report Thursday 14th June
Unplanned outages in Norway provides support to both the NBP and the Continent with flows turning lower day – on day.
Despite this, the NBP has opened 15mcm long with the primary drivers being higher UKCS production, a 17mcm drop in CCGT demand due to higher wind levels and a 17mcm reduction day – on day for MRS injections; due to the Prompt, strengthening the incentive to inject is being reduced.
Gains in the wider energy complex continues to provide support to the curve.
Yesterday US crude oil stocks posted a 4.143m barrel draw – down versus a 1.44m forecast, this bullish news pushed Brent crude up by $1.4/bbl. following the announcement.
The API2 coal 2019 benchmark remains strong pushing over $90/tonne and EU ETS contracts remain strong and the Spot has not falling below the €15/tonne territory since the 16th May.
Macroeconomic data will prove to be an important factor this week, yesterday evening the FOMC gave the hawkish signal that there would be two rate hikes before the end of the year.
This morning very positive Retail Sales in the UK has given support to GBP.
Market participants will be awaiting the ECB Interest Rate Decision at lunchtime and the subsequent press conference this afternoon with all ears awaiting Mr Draghi’s speech.