Daily Energy Market Report Thursday 6th Dec 18. Warmer weather above seasonal norm pressured the market on Wednesday, despite an undersupplied system and an unplanned outage.
Shell announced that St Fergus experienced issues, removing 19.5mcm from supply, and flows from St Fergus remain lower than the 10-day average this morning.
The UK has opened up 38mcm short this morning, mainly due to a drop in LNG supply into the system.
LNG flows have been reduced by ~30mcm day on day as flows from Grain have dropped from 38mcm to 19mcm.
Total UK demand is forecast to sit at 266mcm for the day, which is 7mcm below seasonal normal demand.
Gas burn in the UK remains below seasonal norm due to the mild temperatures; however gas burn for power remains high with a reduced wind generation.
This is set to pick up tomorrow and over the weekend.
Colder weather forecasts have ran overnight for the long range; however, December is still expected to remain at/ just above seasonal norm.
The longer-term weather forecast has little confidence at present and the market appears to have shrugged off this development.
OPEC are meeting in Vienna today, with expectations of a further production cut of between 1 – 1.3million barrels per day, with the final figure dependant on the commitment from Russia.
Any announcements from the meeting will be shared via our Newsflash service.
Daily Energy Market Report Thursday 6th Dec 18 brought to you by British Utilities