Daily Energy Market Report Tuesday 29th May 2018
Warm temperatures are set to continue to deliver across the UK and much of the Continent seeing LDZ demand fall with a significant drop expected for next week.
The bullish perspective is an increase to power burn due to the expectation of low wind generation with spells of low solar generation.
The NBP has opened balanced this morning with demand currently 25mcm below seasonal normal levels; however, LDZ consumption and CCGT demand is flat.
IUK exports are down 6mcm vs Friday’s levels.
MRS sites are currently net injecting 4.8mcm to inventories with no great incentive due to the prompt premium over the Front – Month.
Friday saw oil approximately shed over 3% and headed for its longest run of losses since February as investors weighed Saudi Arabia and Russia’s proposal to boost output to ease concerns over supply shortages, notably with the Iran situation and Venezuela.
This combined with a strong GBP and US Dollar is beginning to weigh on the curve contracts.