Daily Energy Market Report Thursday 6th June 19
Prices on the NBP have opened lower than yesterday’s close with the far curve being driven by rising US inventories and a slowdown in global economic growth continuing to drive Brent downwards, counteracting OPEC production cuts.
Oil prices have steadied near to 5 months’ lows with bearish pressure remaining.
The global economic slowdown is also impacting coal prices with reducing Chinese demand also adding downwards pressure, allowing producers to build up stocks.
The UK system is 14.6mcm long at time of writing with demand forecast at 191.9mcm, 23.6mcm above seasonal normal.
On the supply side, LNG send out sits at 12.7mcm with withdrawals from storage at 19.6mcm.
Langeled is down at 58.3mcm with the UKCS also reduced at 58.3mcm.
On the demand side, we are exporting along the IUK at a rate of 36.1mcm with gas for power demand sitting at 47mcm.
LDZ is at 78.1mcm with the weather as UK forecasts remain unsettled and rather cool in the near term.
Late next week a couple of warmer and drier days are possible before another spell of unsettled weather in week 25.
The cooler weather is resulting in demand being above seasonal normal for this time of the year.
Daily Energy Market Report Thursday 6th June 19 brought to you by British Utilities