12 November 2020
- We have witnessed several weeks of supply variability now, rather than any clear trend. Week-on-week we have seen supply increasing and decreasing, with week 46 showing less supply than the previous week but it is uncertain whether this will continue. Our Interconnector Flow data, however, has been showing a clear trend with almost continual increases in volume since approximately week 42.
- On the first page of the attached report we have described how residential and commercial demand for gas has dropped recently. The chart of the week shows total domestic demand and a clear drop in demand in weeks 45 and 46 can be seen here. This is associated with the anomalously high pressure over the eastern states, producing mild temperatures. LNG exports have continued to rise week on week, although the rate of increase has now slowed. This shows a strong start to the winter season for US gas exports.
- There has been decline in the implied energy intensity this week, associated with a recent increase in energy efficiency. This week has also produced declining outputs for both the ratio of buying versus selling on the physical market and our Credit Conditions index. However, both these indicators remain in positive territory.