Daily Energy Market Report Tuesday 5th Feb 19. The UK system has been met with demand exceeding seasonal norm again today, with total demand at 326.4mcm, 37mcm above seasonal average.
Despite this, the UK system is once again balanced to slightly long, opening with 2.8mcm of length.
Wind generation is forecast low for today, with total gas burn for power at 73.7mcm (22% of total demand).
This is expected to pick up towards the end of the week, as temperatures increase, which should reduce demand at the front of the curve.
The ample supply of LNG to the UK is set to continue with 5 LNG cargoes expected to dock at South Hook by the end of next week helping to put further pressure on the supply side.
The UK market continues to shed value at the front thanks to warmer weather outlooks and comfortable system dynamics.
There was some late gains in the UK market as unexpected maintenance at Bacton and Hornsea took some small capacity offline on Monday.
Further out, the GBP took a downturn on Monday against the Euro and USD following poor UK construction and PMI data.
The UK economic index fell from 52.8 to 50.6, just above the contraction level.
The GBP was buoyed late in the session as investor confidence rating in the Eurozone fell to a 4 year low.
Oil prices remain strong at $62.26 as US sanctions on Venezuela threaten to make more supply out of the market, whilst reports this week point towards a high compliance rate with OPEC nations in the new round of production cuts that began in January.
Daily Energy Market Report Tuesday 5th Feb 19 brought to you by British Utilities