“Gas system balanced around the 197MCM mark – 10MCM below SND, bit more vol through Langeled as maintenance at Dunkerque redirects some continent bound flows. Troll back on the 28th should in any event boost throughput here and also trim IUK exports by the same measure. Still bearish here.
The outlook also unsurprisingly remains fairly dire in the EZ with Mfg. & Services PMI data underwhelming this morning, although to be fair Sterling also took an early bath after disappointing Retail Sales data. Energy curves thus a bit softer on the open also.
You may be sensing already that its really been a day where macro events have taken centre stage in providing sentiment to our markets. Over in the U.S. equity indices yesterday closed in positive territory, big names such as Amgen and Coca Cola topped estimates, Boeing, McDonalds and Yahoo all but dazzling, a sign of things to come with jobless claims data in the afternoon rising for the third straight week and U.S. Mfg. PMI data also falling more than expected in April.
With little news and views out on Greece, €/$ reversed the PMI induced morning losses, whilst headlines that a Saudi led coalition had resumed bombing of Yemen also spurred Brent on by a couple of dollars (despite another news snippet that OPEC are currently pumping almost 2Mbpd over demand) to hit a day high of $65.13.
Yikes, how did we get there so fast, I hear you ask, not to worry, it seems that weak market fundamentals on the prompt is the main driver of late with ill-gotten afternoon gains thus sold into at the close. I joined the crowd offloading some more W15, but for once donning my buying hat picking up a bit of S16 as a hedge. Have to play it from both sides sometimes.
Late mkt news, Eon have signed a deal to buy 2Mn tonnes of regasified LNG/ yr for the next 20 years, also a sign of things to come…”