Daily Energy Market Report Wednesday 13th March 19. The UK market has eased off today with prices across the curve falling considerably and front month falling below 40p/therm.
The DA contract is the lowest price since September 2017 with front month falling to the lowest price since Summer-17 when September-17 contract was valued below 40p/therm in August 2017.
The UK system has opened with slight length, with total supply just 1.6mcm above forecast demand.
Total demand for the UK is set for 251mcm today, 5mcm below seasonal norm as significantly higher wind reduces gas burn for power.
Total CCGT demand is currently at 27mcm with wind generation expected to exceed 10GW until the weekend as Storm Gareth hits UK shores.
Temperatures are expected to sit above seasonal average until the weekend, which is likely to keep demand suppressed in the coming days, before a colder weather period is expected at the start of the next working week.
A lot of risk premium was priced out of the market overnight with long-range forecasts hinting towards above average temperatures for April and following the mild winter in the UK, storage levels are likely to enter the summer injection period around 30% full.
The UK government lost a majority vote on a new Brexit deal last night with some volatility in the GBP intraday.
MP’s will again vote in the House of Commons tonight as to whether the UK should leave the EU with no deal.
The vote will occur at 7pm with FX moves likely to impact early gas curves on Thursday morning.
Daily Energy Market Report Wednesday 13th March 19 brought to you by British Utilities