Daily Energy Market Report Friday 23rd August
The NBP has opened oversupplied for an 8th straight day; with 20mcm of length, this morning assisted by warmer temperatures and reduced CCGT burn.
Demand remains above seasonal normal, with total demand set to top at 124mcm, 20mcm above seasonal average.
Despite demand holding above average values for this time of year, the prompt prices have opened softer in comparison to Thursdays close.
Warmer temperatures expected over the long weekend have reduced demand.
Temperatures are set to reach up to 4°C above average.
On the back of the curve, prices have remained relatively flat day on day.
Oil prices kicked up a touch, trading back above the $60/bbl. mark as uncertainty over the Dollar weighed in.
The Federal Reserve will speak today outlining the monetary policy for the US.
Over recent weeks the US/ China trade war has seemed to ease which had paved the way for increased demand levels also helping to contribute to a bullish move in the commodity.
The GBP soared up against the Euro on Thursday, lifting over 1% as the exchange was boosted by Brexit related comments from across Europe.
French President Macron claimed that a Brexit deal can be amended to allow the UK to leave with a deal, before Angela Merkel, German Chancellor, suggested that a solution to the Irish backstop could be found before the Brexit deadline.
This helped to ease fears of a hard Brexit.
Maintenance is expected to ramp up over the weekend across a number of European facilities with Kollsnes, Visund and Troll expected to go offline for yearly maintenance.
This is the start of one of the busiest spells of maintenance, which could spark some volatility at the front.
Daily Energy Market Report Friday 23rd August brought to you by British Utilities