Daily Energy Market Report Wed 10th Oct 18
A short open to the NBP today with high MRS injections, coupled with an unplanned outage on the Norwegian continental shelf has reduced imports via the SEGAL pipeline by 18mcm vs yesterday’s levels.
Despite these bullish drivers, the prompt has had a weak open with the majority of weight being derived from falling demand, warm weather and a reduction to CCGT generation.
Healthy supply of LNG to the NBP and North – West Europe and providing more weight to the near curve; Dragon has recently received a US cargo which was redirected in transit from Brazil to berth into the West Wales terminal.
Easing coal futures and EU ETS contracts is dragging down contracts along the curve with additional downward movement being contributed from a resurgence in GBP/EUR.
Alas, upward movement in the curve will be expected to come from oil futures continuing to rally and with a production slow – down in the Gulf of Mexico due to Hurricane Michael and the looming Iranian sanctions.