Daily Energy Market Report Tuesday 16th Oct 18. The NBP is holding 13mcm length at the open with Norway and LNG send – out being the main the contributing factors (Langeled is nominated 17mcm higher Day on Day, St. Fergus 4mcm up).
CCGT demand has eased 5.3mcm and MRS injections have turned – down 4.5mcm.
45 – Day forecast is showing the potential for cold weather risk towards the end of the month and moving into November.
Storage is tight across Europe and with no Rough, marginal IUK capacity booked and Groningen production cap the NBP and European hubs will need to price – up to attract the flows.
LNG imports remain healthy; as there is low Asian demand so; numerous cargoes are being kept in the Atlantic basin.
GBP/EUR has just ticked back over 1.14 as weak Italian CPI; German Economic Sentiment and EUR Trade Balance data has been posted.
This could provide a bearish factor to the curve, but great uncertainty regarding Brexit should hold – back the bears.
Crude futures eased and stabilised yesterday.
Geopolitical unrest regarding the potential assassination of a Saudi journalist has stoked global tensions and provided support, this was counteracted from the bearish sentiment following Friday’s monthly report from the IEA stating the market was “Adequately supplied for now” and it reducing global oil demand growth.
Daily Energy Market Report Tuesday 16th Oct 18 brought to you by British Utilities