Daily Energy Market Report Wednesday 9th Jan 19. Prices have lifted in the UK market this morning as colder weather and higher demand drives the front curve despite a long system.
Prices at the front of the UK curve have lifted on Wednesday morning due to increased demand and colder weather forecasts.
Total demand for the UK sits at 335mcm, which is 46mcm above seasonal average and 43mcm up day on day.
Despite the increase in demand, the UK system opened at 26.7mcm long this morning, with increased LNG flows and increased imports into St Fergus.
Colder revisions have been made to the upcoming weather forecasts, which predict a 2/3°C below seasonal norm to arrive by the end of next week.
This weather pattern is by no means as bad as the predicted stratospheric warming event which was forecast before Christmas and failed to materialise, but could hit the demand side.
The US and China have entered a third unscheduled day of talks in a bid to quash the current trade war which has seen both countries slap import/ export tariffs on goods, and Brent Crude remains priced up for the week as fears that global demand will increase if US and China agree to end the spat.
On Tuesday, there were significant gains in the Coal and EUA market, which drove the far curve upwards.
Daily Energy Market Report Wednesday 9th Jan 19 brought to you by British Utilities