Archived Summaries

Friday 03 August 2012
Market Opening
  The oil market lurches from one non-event to the next and following the disappointment of the Federal Reserve and European Central Banks failure to introduce any fresh economic stimulus over the past 2 days, investors are now betting on poor U.S. employment data today which may prompt action from the Fed.  Crude prices on both sides of the Atlantic have gained a dollar with Brent reaching an overnight high of $107 per barrel.  On the UK gas market, an early system deficit is pressuring the spot price, within day having gained 0.70p in early trading.  Remaining prompt prices are trading below last night's closing levels however in expectation of an improved supply-demand situation over the weekend.  Forecast demand for today is down to just 170 MCM but forecast deliveries were running 6 MCM short at 9AM.  A fall-off in Langeled flow rates to just 15 MCM overnight has changed the system balance from yesterday while LNG send-out from Milford Haven continues at just over 50 MCM.  On the futures market, early trading has seen marginal reductions on the front month and October contracts but activity is typically sluggish for a Friday and there has been little trading beyond the front winter which is showing a 0.15p gain on last night's closing price.