Daily Energy Market Report Tuesday 8th Jan 19. Despite comfortable system economics, the UK has opened with prices up over 1p/therm on front month contracts.
The UK has opened with a long system, holding 10mcm of length as LNG supply increases day on day.
An LNG vessel docked at South Hook yesterday, lifting LNG flows up above 50mcm in the UK.
Four more vessels are expected to arrive before the end of the weekend.
Total demand for the UK is forecast at 287mcm for today, which remains below seasonal normal as milder weather arrives into the region.
Norwegian flows through Langeled remain high at 74mcm and despite Gas burn for Power climbing 7mcm today; the UK is comfortable on the supply side.
The GBP has shown some early strength this morning, following positive figures on the Halifax Housing index, beating consensus by 2%.
Despite some strength in GBP over recent days, it has done little to offset gains on the far curve this morning.
Brent Crude prices remain strong following the significant gain over the weekend into Monday’s trading, as the US and China continue to negotiate the end of the trade war.
Daily Energy Market Report Tuesday 8th Jan 19 brought to you by British Utilities