Daily Energy Market Report Friday 16th August 19
Mixed bag at open on the NBP today.
High wind generation and weaker demand continues into today but the front has held onto to its value with balance of the month strengthening.
Changes on the demand side of the supply picture have resulted in length of 10mcm for the UK system.
Gas for power demand sits at only 20.9mcm because of the strong wind generation, reducing reliance on gas.
LDZ demand is weaker at 125mcm.
After yesterday’s losses in the wider energy complex, carbon, coal and oil have also ticked up slightly keeping the back of the NBP curve supported retracing the moves yesterday because of fears surrounding a global economic slowdown and a recession in the US after the Treasury yield curve inverted for the first time since June 2007.
Historically, this has been a reliable indicator of an impending recession.
On weather, there is notable disparity between runs, which could mean volatility in prompt prices as forecasts become clearer.
The latest runs show cooler and wetter weather next week with a warmer outlook and increasing risk of lower wind generation from Thursday onwards.
Daily Energy Market Report Friday 16th August 19 brought to you by British Utilities