Daily Energy Market Report Wednesday 23rd Jan 19. The UK has opened with a short system today, the first time since 24th December 2018, as forecast demand lifts for a 5th consecutive day.
Total demand for the UK is set at 385mcm today, 94mcm above seasonal demand.
The UK system has turned short due to the lift in demand; however, there are weaker flows from LNG supply (6mcm) and from Bacton (13mcm down).
With the cold weather and weaker wind generation, the gas burn for power generation has lifted.
The demand for Power is at 91.4mcm today, lifting demand at the prompt and lifting prices.
Temperatures are set to remain below seasonal norm until Friday, where forecasts are predicting the UK to be 4/5°C above seasonal norms.
This is likely to reduce gas demand and is bearish for the prompt.
Temperatures following this are expected to remain below average.
Prices have lifted across the far curve due to lifts in Coal and Carbon prices on Tuesday.
Carbon EUAs Spot price climbed €0.73, with gains of this nature also filtering through onto futures contracts to Dec-23.
The increases in Coal and Carbon raise demand on gas, as it becomes a cheaper alternate energy source.
The GBP has climbed again against the Euro as the UK published some record figures in relation to employment figures.
Daily Energy Market Report Wednesday 23rd Jan 19 brought to you by British Utilities