Daily Energy Market Report Tuesday 7th August 2018
Day – on day the NBP has opened long with the system being 13mcm oversupplied this morning with demand opening 1mcm above seasonal normal.
CCGT demand is 3mcm higher day – on day this morning, as wind levels remain low due to the high-pressure weather system across the UK.
Exports to Belgium via the IUK have ramped up this morning to 35mcm vs 17mcm yesterday due to Zee pricing higher, in – turn Langeled imports are up by 5mcm and flowing well above the nomination, as the NBP remains a country of transit for Norwegian flows.
Bearish GBP with the fear of a no – deal Brexit continues to influence contracts along the curve as GBP/EUR fell to 11-month lows with little data being published to provide any support for Sterling.
The fuel mix remains bullish as falling Saudi production and the impact of looming Iranian sanctions are rallying the bulls; API2 coal has traded upwards as the EU power complex remains strong as demand remains high.