Daily Energy Market Report Wednesday 31st Oct 18
The UK opened with a short system on Wednesday, 21.6mcm short before improving to 17mcm short by 09:30am.
A drop in LNG supply into the system, down 30mcm from Tuesday is a large factor.
Total UK demand is at 280mcm for Wednesday, which, despite falling 7mcm day on day, is still 60mcm above seasonal average.
Temperatures are still set to remain above seasonal norm for the majority of November, which is still providing some downward pressure on near contracts.
Norwegian flows remain high at 72mcm, but LNG flows have reduced by 50% day on day.
Total LNG nominations were at 65mcm on Tuesday, down at just 33mcm today.
Flows from Grain are down 12mcm and Dragon is down 13mcm to just 3mcm.
Storage is withdrawing less gas today, with Holford down 7mcm day on day.
There were significant losses in Carbon and Oil prices on Tuesday helping to push the curve down.
Oil lost just over 1% to $75.08 as global demand is threatened in the trade war between US and China.
In addition, Saudi Arabia and Russia have committed to make up the supply deficit from Iran once US sanctions kick in on the 4thNovember.
Carbon prices are down 15% for the week, hampered by poor auction results and slower Eurozone economic data, with growth the slowest since 2014.
Oil, Carbon and Coal prices have all opened up this morning, following the losses seen on Tuesday, pushing the gas curve up.
Daily Energy Market Report Wednesday 31st Oct 18 brought to you by British Utilities