Daily Energy Market Report Monday 3rd June 19
The UK has opened with an extremely long system this morning as wind generation picks up considerably and temperatures remain above seasonal norm.
Today is the last day with temperatures set to be above average, before falling to 2°C below seasonal average for a week, which is likely to lift demand.
Wind generation has picked up with CCGT demand at just 30mcm today, down by approximately 20mcm from last week.
Furthermore, the IUK which exported 40mcm all last week, has scaled back exporting to just 25mcm today.
Norwegian flows have ramped back up towards capacity, sitting at 73mcm this morning, with Langeled flows not reaching 70mcm since 28th March.
The supply into the UK is strong this morning and sentiment continues, with WD & DA gas both dropping to 24.90p/therm and 26p/therm respectively.
Crude prices have slashed roughly 4% on Friday’s trading and early this morning as the US threatens Mexico with tariffs and the ongoing trade war between the US and China threaten global economic slowdown.
Prices for Brent Crude are currently trading at $60.85/bbl. at time of writing.
Trump begins a 3-day state visit to the UK today, with Brexit uncertainty continuing in Westminster leaving the GBP on the back foot against the Euro.
The exchange briefly dipped below 1.13 on Friday before small recovery this morning.
Daily Energy Market Report Monday 3rd June 19 brought to you by British Utilities