Daily Energy Market Report Monday 14th Jan 19. Soft open on the NBP this morning with an oversupplied system and losses in oil.
The UK system is around 33mcm long with strong imports from Europe, with the BBL flowing around 35mcm and Langeled near capacity at 74mcm.
Healthy flows are also coming in from the UK continental shelf and LNG send out is strong at 44.9mcm with 2 cargoes expected to hit UK shores before the 19th of January.
Demand is in line with seasonal normal with total demand at 306mcm, only 7mcm above seasonal normal.
LDZ is at 207mcm with gas for power demand up day on day to 70mcm, with a drop in wind generation.
Brent is down on weak Chinese import data with Chinese oil imports falling 4.4% in Dec – 18.
US rig count is also contributing to the bearishness with the down four rigs to 873.
At time of writing, Brent sits at $59.56/bbl.
Weather is above seasonal normal today, alleviating demand.
Chillier days are expected towards the end of this week with the market still jittery around a predicted cold spell to come towards the end of this month.
Finally, it is a big few days for Brexit coming up with the vote on May’s deal tomorrow.
GBP/Euro strengthened on the 11th and has since held its strength over predictions that the Brexit deadline of the 29th March will be extended, which will likely decrease the risk of a no deal Brexit.
However, more uncertainty is yet to come as it is widely thought that May’s deal will not pass through the commons.
Increases in GBP/Euro has a bearish impact on UK gas as stronger sterling discourages buying.
Daily Energy Market Report Monday 14th Jan 19 brought to you by British Utilities