Daily Energy Market Report Thursday 31st May 2018
Warm temperatures continue to deliver to the UK and much of the Continent however; the current weather system is increasing power burn due to low wind levels, combining with spells of low solar generation as clouds and persistent rain falls across much of the United Kingdom.
The NBP has opened slightly short this morning with demand currently 30mcm below seasonal normal levels with LDZ consumption and CCGT demand flat.
IUK exports are down 18mcm vs yesterday’s levels, with the current basis spread and Norwegian outages there is little incentive to flow.
MRS sites are currently net injecting a measly 3mcm to inventories due to the premium at the Prompt.
Further unplanned outages at the NCS are supporting near – term contracts, more capacity is being reduced at the Kollsnes processing facility with 26mcm removed today and a 10mcm reduction at the Troll field.
Curve contracts have taken direction from yesterday’s bullish rally on Brent as Russia’s State bank showed caution for plans and rumours that oil production will increase, ending the OPEC cap.
A weakening US Dollar following weak Employment data, Consumer spending down 0.2% and GDP down 0.1% versus forecasts, supported the downward movement.