Oil & Markets
Daily Energy Market Report Wednesday 9th October 19: Concerns over lack of progress in negotiations on the PM’s recent Brexit offer left sterling under pressure on Tuesday, slipping to multi-week lows against both the dollar and euro.
Support in wider markets was also difficult to find as new hurdles between the US and China coming to an agreement increase the gloomy tone for global trade dynamics.
Equity indices across western markets priced in the sentiment and wiped out the previous session’s gains, with carbon markets edging further into over-sold territory.
Moves in oil were limited, though room for downside remains should EIA numbers show a build this afternoon.
Gas & Power
Norwegian imports through Langeled remain muted at just 8mcm, despite only smaller-scale unplanned outages currently adding to the final run of maintenance season.
Strong LNG output managed to comfortably meet reduced demand, though positioning around the outlook for the balance of winter continues to drive volatility in near curve contracts.
Early support in emissions markets and gas firming from the open resulted in premium heading into power forwards.
A complete turn in carbon costs towards the close of the session failed to erode much of this value, seeing contracts across the curve close up on the day.
Daily Energy Market Report Wednesday 9th October 19 brought to you by British Utilities