Daily Energy Market Report Thursday 10th Jan 18. The UK has opened with a mixed market on Thursday with losses on the front and near curve; however prices have ticked upwards on the far curve.
On Wednesday, the UK shrugged off colder weather forecasts as strong supply offset weather driven gains.
Total demand for the UK lifted again day on day, to reach 343mcm, sitting 53mcm above seasonal norm.
Despite demand sitting well above seasonal norms, the supply picture remains healthy in the UK with strong LNG and Norwegian flows keeping the system long.
This, coincided with milder upcoming temperatures has helped to put pressure on the prompt.
Brent Crude prices lifted above $60/bbl. on Wednesday as the market expects an announcement signalling the end to the US and China trade war.
EIA published Oil stock results for the US, which were better than forecast, which softened the gains.
It was expected that there would be a decrease in 2.8million barrels a day, however results out turned at a decrease of 1.7million, meaning production is stronger than expected.
GBP weakened on Wednesday following more Brexit uncertainty with parliament set to vote on the Brexit deal negotiated by Theresa May and the cabinet on Tuesday.
This lifted the back end of the curve; however, there was some early strength on Thursday as it was announced that government must present a ‘Plan B’ to parliament within 3 days if the vote goes against them.
This increases the chances of a ‘softer’ split from Europe as it leaves less time to negotiate new terms if a deal is quashed.
Daily Energy Market Report Thursday 10th Jan 18 brought to you by British Utilities