Archived Summaries

Thursday 02 August 2012
Market Opening
 Following the disappointment of yesterday's inaction by the Federal Reserve, the markets are looking to the European Central Bank for some positives today.  The expectation is  that the ECB will confirm that it will resume buying of Italian and Spanish bonds in an effort to keep interest rates on these bonds to manageable levels.  The current situation has lead to a strengthening of the dollar against the euro which is limiting the upside for crude oil to 50 cents so far this morning.  The UK gas system is finely balanced with forecast deliveries matching demand of 183 MCM and physical deliveries running 5 MCM ahead of this level.  LNG send-out from Milford Haven remains robust at 53 MCM and Norwegian supplies have increased to 54 MCM with Langeled deliveries having doubled to 38 MCM overnight.  UK prompt gas prices have eased considerably in early trading.  Within day and day ahead contracts are down by 0.90 and 0.60p respectively.  On the futures market, the front month and October prices have eased slightly reflecting the improved supply outlook while contracts further out the curve are trading marginally up on last night's closing prices with support from the oil market.