Daily Energy Market Report Wednesday 8th May 19, the Prompt to near curve has gained pressure this morning from ample supply despite rising demand, in contrast, the far curve has taken direction from overnight gains on EU ETS contracts ignoring the recent bearish movement for Crude oil.
The NBP has opened 8mcm oversupplied this morning with demand 51mcm above the respective seasonal norms driven by temperatures being below seasonal norms for the next two weeks; however, ample supply from Norway and strong LNG send-out should combat this increase.
MRS withdrawals are down 11mcm vs yesterday however continued downward pressure on the Prompt should signal short-term injections, similar to recent days.
There is 60mcm of Norwegian supply set to go offline from 10-13th May for scheduled maintenance, as this is planned it would have been priced into the market, any risk premiums will be for a delayed return to production.
Market participants will be awaiting US crude and distillate inventories this afternoon as in yesterday’s session Oil prices closed at their lowest in over a month.
Once again, US/Sino trade deal concerns over global growth and a great possibility that the results this afternoon could post 19-month highs for the commodity; American crude inventories are currently at Sep-17 levels.
Daily Energy Market Report Wednesday 8th May 19 brought to you by British Utilities