Daily Energy Market Report Friday 31st May 19
A bearish open this morning with losses being posted across many European forward curves as ample supply and warmer forecasts weigh on the near-curve whilst contracts further out have taken direction from healthy storage inventories and a bearish commodity complex.
The NBP has opened 8mcm undersupplied, a decrease of 10mcm day on day with demand 27.5mcm above its respective seasonal norms.
26mcm of production remains offline at the Troll field for planned maintenance which is set to end tomorrow, the Dutch Emden terminal is then scheduled for 32.7mcm of supply restrictions for its annual maintenance.
Although the Isle of Grain is expected to receive two cargoes this weekend from Algeria and Honningsvaag, respectfully, South Hook isn’t expected to receive any deliveries until the 9th June which will subsequently see LNG send-out reduce over the forthcoming days.
Very much a bearish open for the wider commodity mix, shedding weight, in particular oil.
Crude prices shed nearly 4% reaching close to their lowest levels in over two months as US crude data posted smaller than forecasted reduction to inventories, this combined with the ongoing fears of global economic slowdown due to the US/Sino trade war has seen Brent fall below $64/bbl. this morning.
Have a great weekend
Daily Energy Market Report Friday 31st May 19 brought to you by British Utilities