Daily Energy Market Report Monday 4th Feb 19. The UK market has opened softly this morning with prices weakening across the curve.
The UK system is 11mcm long, despite demand holding above seasonal norm.
Total demand for the UK is at 333mcm with seasonal demand at 288.
The UK demand has remained above season norms today despite warmer weather.
Wind generation and renewable generation is extremely low leading to Gas burn for power climbing to 79.2mcm.
The latest weather models are pointing to a mild February, with temperatures set to climb and remain above seasonal norms until the end of the month.
The warmer weather is reducing gas demand and is taking cold weather risk out of the market.
Oil prices have lifted significantly over the weekend, climbing from $60.80 to $63.22 as OPEC led supply cuts, refreshed for January 2019 took effect and US sanctions on Venezuela further weigh on global supply.
On the other hand, Coal and Carbon EUA’s have reduced in value since Friday, which is helping to offset further gains on the far curve.
Daily Energy Market Report Monday 4th Feb 19 brought to you by British Utilities