Daily Energy Market Report Tuesday 27th August 19
The UK has opened with a short system, short 3.7mcm with forecast demand climbing day on day, with flow restricted by the start of some key periods of maintenance on some of Europe’s biggest facilities.
The UK forecast is set at 138mcm for today, 30mcm above seasonal average, impacted by increased CCGT burn and lower Langeled flows.
Total demand for CCGT in the UK stands at 54.3mcm, up ~30mcm from last week as the wind outlook remains low for the week.
The recent heatwave is set to end overnight but increased cooling demand is still strong for today, helping to push demand up.
Langeled flows are down at just 21.6mcm with Troll and Kollsnes fields turning off over the weekend.
Both facilities are not expected back until 5th September and are taking 120mcm & 140mcm offline respectively.
The UK temperature is set to cool down throughout the week, culminating in below seasonal average weather over the weekend and into the next working week, with wind forecasts working in opposite, expected to gradually increase this week.
Oil prices have fallen this morning after strength on Monday trading, with Trump announcing that he thought China were sincere about wanting to reach a trade deal.
The commodity has lost approximately $0.80 this morning.
Prices across the curve have come under further pressure from cheaper Coal and Carbon prices with Coal falling to $63.25 for Cal-20 API and EUA’s dropping to €25.34, the cheapest price since the end of June.
Daily Energy Market Report Tuesday 27th August 19 brought to you by British Utilities