Daily Energy Market Report Wednesday 24th Oct 18

 

Prices softened in the NBP on Tuesday, as good supply and reduced demand, alongside a selloff in Oil prices helped to weaken the curve.

The UK opened with a short system on Wednesday morning, the UK short 15.6mcm as planned maintenance beginning on St Fergus, set to restrict some Norwegian flows into the UK.

These restrictions are set to be 26mcm on Wednesday, but climbing to ~35 by the end of the week.

Already this morning, Langeled flows have fallen to 42mcm, down 18mcm day on day and down 30mcm from Monday.

Wind levels across Europe are expected to keep gas demand for power burn low for the remainder of the week and German wind levels are forecast to climb significantly over the course of the week.

The colder temperature forecast between 25th and 29th October remains confident, with the UK expected to hold 5°C below seasonal norms.

Oil prices fell more than $2/bbl. on Tuesday as fears of supply disruption from Iran weakened, when US sanctions take effect on 4th November.

Saudi Arabia is ready to meet the deficit from Iranian production, claiming they are ready to increase production to 11 million barrels a day, which is the highest level in history for Saudi Arabia.

Oil prices have also taken a hit, as investors continue to sell commodities, as they look to move into safer havens.

Carbon prices climbed back above €19 on Tuesday, with holding further losses on the gas curve as Oil was sold off heavily.

Daily Energy Market Report Wednesday 24th Oct 18 brought to you by British Utilities

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