Daily Energy Market Report Thursday 7th Feb 19. The UK has opened with a slightly short system this morning with temperatures revised slightly down for the upcoming week driving prices higher upon open.
Since then, prices have been pressured and are trading lower.
Total demand for today has fallen below 300mcm for the first time since 8th January as mild temperatures and higher wind generation depress gas burn.
CCGT demand has fallen to 55mcm, down approximately 25mcm from each day this week, but despite a comfortable system and weaker gas demand, a colder weather outlook initially helped support prices.
Norwegian flows remain at named capacity, LNG flows remain strong and Gas burn for power is down considerably day on day helping to keep the system in check.
The UK is also importing 3.7mcm through the IUK.
Oil prices have climbed $1 to $62.48 as US Crude stocks built less than forecast and OPEC compliance rates for production cuts in January proved well supported.
Carbon EUA’s have climbed for a third consecutive day as supply couldn’t meet demand as an auction was cancelled fuelling near €2 gains since Monday’s trading.
The LNG Armada continues to arrive into the UK with 4 vessels set to unload at South Hook and 1 cargo at Grain in the next week, helping to keep supply levels up in the NBP.
Daily Energy Market Report Thursday 7th Feb 19 brought to you by British Utilities