Energy Market Update - 19 March 2024

The energy market opens slightly short, influenced by lower-than-average LDZ demand, yet poised for a shift with expected temperature drops and increased wind speeds. The market remains vigilant with stable Langeled flows and anticipated return of Norwegian supplies, while LNG imports and rising Asian demand add complexity.

With the market balancing lower LDZ demand against forecasts of cooler weather and subsequent demand increases, attention turns to wind's influence on gas burn. Stability in Norwegian flows and LNG arrivals provide a backdrop of supply security, amidst rising TTF and NBP prices fuelled by Asian market competition.

Yesterday's notable price jumps in TTF and NBP contracts reflect an aggressive market response to rising LNG demand. The UK's steady gas storage levels, alongside consistent LNG and pipeline inflows, suggest a well-supplied scenario. However, the market remains cautious, monitoring EU storage, Russian flows, and the ongoing absence of Nord Stream.

Today's pricing dynamics, underscored by no change in TTF Front Month contracts and slight adjustments across other key contracts, illustrate the market's nuanced reaction to supply-demand factors and external price pressures. With oil, carbon, and LNG prices all trending upwards, the market navigates a complex landscape of energy costs and supply stability.