Daily Energy Market Report Thursday 17th Jan 19. The UK market has lifted significantly this morning with prices at the front of the curve lifting up over 1p/therm compared to Wednesday morning but near 2p/therm on February in comparison to midday yesterday.
The UK has opened with a long system, 16.5mcm long despite demand lifting by 40mcm day on day to 339mcm.
The total demand for the UK is forecast to be 50mcm above seasonal norms as cold weather returns.
Lower wind generation has lifted gas demand for power and total demand for heating has climbed to 243mcm.
The market has reacted to a colder move in weather forecasts for the upcoming period.
The UK is now expected to be below average for the remainder of the month with temperatures expected to fall 4/5° C below average throughout next week.
Gains have been offset on the far curve as the GBP continues to strengthen this week, after closing Friday at 1.1074 the GBP is at 1.1301.
The GBP strengthened when confirmation that a general election will not go ahead as Theresa May survived the vote of no confidence.
The ECB is expected to announce today that inflation fell through December in the Eurozone, which could keep GBP on the up.
Oil prices opened slightly lower on Thursday as US Crude production lifted to sit just below an unprecedented 12 million barrels.
Daily Energy Market Report Thursday 17th Jan 19 brought to you by British Utilities