Daily Energy Market Report Thursday 7th June 2018
Contracts eased on Wednesday, despite opening higher as a fall in Oil prices helped push the curve downwards.
Oil prices fell on Wednesday as the commodity came under pressure from surging US production, unexpected increase in US stocks and signals that Saudi Arabia and other large producers are ready to increase production.
US output grew unexpectedly on Wednesday as data published signalled that Oil inventories increased by 2.1m barrels, Gasoline climbed by 4.6m barrels and distillates were up just over 2million barrels.
US production hit a record high at 10.8million barrels for the week, up 1.5million barrels from one year ago.
The UK opened 9mcm long this morning with demand falling to 146mcm, down 2mcm day on day.
The UK is 35mcm below seasonal normal demand as the warm weather continues to persist in the region, reducing consumption.
LDZ and CCGT demand remain unchanged day on day, and storage facilities have turned to net injection of 4mcm.
Stronger Coal and Carbon prices helped to offset further losses on the curve ensuring that prices held relatively stable despite strong losses on the Brent market.
The Dutch government has suggested they may be able to reduce production at Groningen to less than 12bcm by 2020, the economic affairs minister stated to parliament this morning.