Daily Energy Market Report Tuesday 12th Feb 19. Gas prices at the front of the curve were pressured on Monday, driven by warmer weather outlooks and the continued influx of LNG cargoes into the UK.
Today, demand has fallen by 36mcm today, down to 292mcm, which is just 5mcm above seasonal average.
Temperatures are set to hold 3-5°C above seasonal normal supressing gas demand in the country.
Temperatures remain mild and revisions have been made upwards in the latest models with temperatures holding as much as 5°C above seasonal norm until Wednesday 20th February, with temperatures holding 2-3°C above norm until the end of the month.
Supply remains healthy with six LNG cargoes expected to unload into the UK with four into South Hook, two into Grain by the end of this week.
Flows from Grain have ramped up today from 5mcm to 22mcm.
Norwegian gas flows into the UK remain at capacity and this combined with the healthy LNG outlook is helping to pressure the front of the curve.
The GBP posted poor economic results on Monday with GDP declining 0.4% (forecast 0%) and growth gaining 0.2% (forecast 0.6%) with economy expanding 1.4% in 2018, the lowest since 2012.
The GBP saw losses against the Dollar and the Brexit uncertainty continues to loom on the currency.
Any losses on the GBP have the potential to lift gas prices on the far curve.
Daily Energy Market Report Tuesday 12th Feb 19 brought to you by British Utilities