Daily Energy Market Report Friday 25th Jan 19. It has been another soft open across the front of the curve on the NBP today as mild temperatures continue to pressure the curve.
The Feb-19 contract has dropped ~5p/therm since Wednesday from above 60p/therm to 55.25p/therm at time of writing.
Cold weather has continued to be removed from weather models, reducing the upcoming demand picture in the UK.
Total demand for the UK today is at 309mcm, a reduction of 59mcm day on day as industry ramps down for the weekend and temperatures climb back above seasonal norms for the first time this week.
The UK system opened 18mcm long and the healthy supply combined with warmer weather revisions led to a sell off at the front.
The far end of the curve saw losses filter through dragged down by the near curve, but also coming under pressure from weakening Coal and Carbon prices.
The front year API2 Coal contract has fallen by $1.40 from yesterday and is at $84.60 in comparison to the $87.75 seen on Wednesday.
Carbon EUA’s have shed over €1 across all Spot and futures contracts in the last two days, helping to reduce the demand on the gas for power burn.
Daily Energy Market Report Friday 25th Jan 19 brought to you by British Utilities