Daily Energy Market Report Tuesday 29th Jan 19. The NBP has opened 17mcm long with demand set 80mcm above its respective seasonal norms, a 19mcm increase day – on day.
The strong demand has understandably coincided with the cold weather delivering across much of the UK, combined with low wind generation pushing CCGT demand to 81mcm – an 11.4mcm increase versus yesterday’s levels.
MRS sites have increased send – out to 27mcm this morning taking advantage of the strong Prompt prices before mild weather returns.
It is interesting to note that IUK nominations have increased to 26mcm, its highest nominated import level since the 19th March 2018.
The NBP Summer – 19 contract has fallen below 50p/th. this morning taking direction from the unlikelihood that a significant and prolonged cold spell will envelop over the UK, eroding risk premiums and seeing spreads narrow.
Contracts further along the forward curve have moved down with the bearish sentiment and the front also taking direction from a weakened and much wider fuel mix.
Daily Energy Market Report Tuesday 29th Jan 19 brought to you by British Utilities