Daily Energy Market Report Friday 8th Feb 19. The NBP has softened on Friday with prices falling across the length of the curve.
Total UK demand is at 273mcm today, 15mcm below seasonal average as temperatures continue to turn mild.
Wind generation has ramped up today, helping to supress gas demand for power generation.
Gas prices have weakened on the prompt as weather revisions have been corrected upwards with the anticipation of temperatures to remain at seasonal norm for the majority of February.
The UK system is also long today 5.9mcm as UKCS flows remain strong and Langeled remain at capacity.
Gas burn for power generation has tailed off; at only 35.5mcm today (20mcm lower day on day) and 40mcm lower compared to start of week.
Coal prices have fallen overnight, pressuring the back of the curve with prices easing back from $81.20/tn. to $78.85/tn.
News broke that Germany’s Coal commission published recommendations for a phase out of Coal by 2038 removing demand and easing EUA’s as the market expected German companies to sell Long EUA’s.
Brent prices helped to pressure the far curve further as the trade war between US and China shows no sign of ending with rumours suggesting it could continue, sparking fears about demand growth.
Daily Energy Market Report Friday 8th Feb 19 brought to you by British Utilities