Daily Energy Market Report Tuesday 12th June 2018
The UK opened 1.2mcm short, but recovered by 09:30 and at time of writing the UK system is 4mcm long.
The short system was aided in part by a 20mcm increase in UK forecast demand due to cooling temperatures with demand increasing to 166mcm.
Total UK demand remains below seasonal average.
GBP weakened on Monday leading to a price increase on the back of the UK curve.
UK trade deficit climbed from – £3.22bn to – £5.28bn despite expectations of the deficit shrinking.
Factory output also provided some poor data falling from 0.1% to – 0.8%.
The far curve was impacted further by gains in the price of Oil.
Brent crude gained over $1 in the afternoon session on renewed supply disruptions from Iran and Venezuela impacted by US sanctions and economic crisis respectively.
Saudi Arabia looking to increase production to cover the losses from these two nations took a more hesitant approach leading to supply fears.
Cooler temperatures in the UK on Tuesday have lifted CCGT demand for today, up to 58.2mcm.
Wind generation is expected to increase over Thursday and into the weekend.