Daily Energy Market Report Wednesday 16th Jan 19. NBP has opened higher this morning off the back of gains in Brent and colder weather forecasts despite GBP strengthening on the Brexit vote.
May’s deal was overwhelmingly rejected by parliament last night by a majority of 230 votes.
This result had a bullish effect on sterling, as it is likely that the Brexit process will now be delayed, allowing time for a way forward to be agreed and reducing the risk of a no deal Brexit.
Temperatures are set to drop below seasonal normal at the weekend and remain below for the next couple of weeks.
Forecasts this morning have moved colder for next week resulting in gains at the front of the curve.
Brent crude has somewhat recovered from losses at the start of this week off the back of supply tightening because of the OPEC supply cuts.
It is currently at $60.96/bbl. at time of writing; however, fears around a global economic slowdown are still weighing on the market.
The system is 23mcm with little change in the supply picture; strong flows from Europe along the BBL and Langeled, coupled with healthy UKCS and LNG send out nominations.
Demand is at 298mcm and is in line with seasonal normal.
Daily Energy Market Report Wednesday 16th Jan 19 brought to you by British Utilities