The UK has seen an “undersupplied” gas system this morning despite demand remaining 11% below seasonal normal levels, according to the daily market report from npower.
It forecasts the line pack to close around 17 million cubic meters short today. Client Portfolio Manager Sarah Marshall (pictured) said flows from both the Langeled and BBL pipelines have dropped to under 60 million cubic meters and 29 cubic meters respectively.
“We have however seen Rough storage start to withdraw so this should start to add some comfort to the system. The short system is therefore supporting prices this morning”, she added.
The power system is however “healthier” with a peak margin forecast of over 11GW as wind has “picked up to just below 1GW” and is expected to continue to rise – “with a forecast peak generation of 5GW tomorrow”.
Nuclear generation has also picked up to around 1.6GW, with the Hartlepool Unit 2 expected to come back online today.
Looking at oil, Ms Marshall said: “It continues to trade at around $108 a barrel. We saw weakness yesterday following a larger than expected crude stock build and also further pressure has come this morning from additional weak Chinese data.”
She went on: “We do have a continued support for oil due to the ongoing situation in Ukraine. Yesterday the EU agreed to a framework on sanctions for Russia and this is expected to be implemented on Monday unless any diplomatic solution is found.”