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This week we can see the impact of how stricter lock down measures are meaning that demand levels continue to fall as companies are now operating from home or have ceased trading until further notice, leaving offices and factories shut.
This morning’s session has seen the UK Gas system open largely oversupplied again, as the UK could look to offload surplus supply into mainland Europe. This would add further weight to prices. A Qatari LNG tanker is expected at South Hook terminal this morning and a further import of Yamal LNG volume is expect into Dragon terminal tomorrow.
Brent Crude Oil is currently trading near 18 year low as the US, the world’s biggest oil consumer, surpassed China with the most confirmed cases of coronavirus. Prices are now so low that many producers can no longer pump crude at a profit, resulting in the shutdown of fields, while storage is also rapidly filling due to the steep contango which is also expected to curb output.
The British Pound has improved against the Euro and most the world’s largest currencies over the course of the past 24 hours but has since fallen against the U.S. Dollar amidst ongoing volatility due to the coronavirus economic crisis.