Daily Energy Market Report Wednesday 5th June 19

Daily Energy Market Report Wednesday 5th June 19

 

The UK system is much more comfortable today than on Tuesday, despite demand remaining well above seasonal norm.

Total UK demand is expected to reach 186mcm, 18mcm above seasonal average.

The UK system is 6mcm long at time of writing, with flows out of Holford picking up the deficit from Tuesday.

Holford is nominated to flow at 18mcm, supply not seen since 5thApril from the terminal.

Langeled flows have fallen slightly but remain strong at 62mcm, with increased demand on the CCGT demand, climbing 20mcm day on day.

Temperatures are set to fall below seasonal norm and remain 1°C below average for the next 7 days.

The back of the NBP curve has strengthened overnight, taking direction from bullish moves on the wider energy complex on Tuesday afternoon.

API2 Coal Swaps and rising EU ETS emission prices lifted the far curve, with EUA’s increasing by €0.85 and Coal lifting $1.65 respectively.

The GBP has taken a further downward turn this morning, falling to 1.1270 as Brexit uncertainty continues.

Theresa May is set to resign on Friday and with the new PM leadership looking competitive in terms of number of candidates it only leaves 3 months for the new PM to sign off on a Brexit deal before 1st October.

OPEC meet at the end of June, and bullish statements overnight have lifted prices this morning providing further support on the far curve.

The Saudi Energy minister has confirmed that they are willing to do whatever it takes to stabilise the market.

OPEC production cuts are set to expire at the end of June unless a new deal can be agreed.

One to watch at the end of this month.

Daily Energy Market Report Wednesday 5th June 19 brought to you by British Utilities

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