The gas system in the UK is “well-supplied” this morning and a “healthy” outlook has seen near-curve prices drop lower, according to the daily market report from npower.
Although Langeled flows to the UK have dropped slightly to 23 million cubic meters as a result of them being directed to Europe, South Hook flows remain “healthy” at 47 million cubic meters as it makes way for three cargos next week, Client Portfolio Manager Sarah Marshall said.
The power system is also healthy with a peak margin forecast at more than 16GW. Wind energy has picked up to around 3.3GW this morning and is expected to increase further to more than 4GW later today.
Nuclear power stations are generating 7.3GW of power and the Hartlepool Unit 1 facility, which was due back online today has been pushed back until Friday.
Ms Marshall added: “On the curve we’re also seeing further weakness this morning. This comes as the Pound sees strength against the Euro following better than expected UK services data released yesterday and also disappointing German and French data released this morning.”
Oil continues to trade at just above $107 a barrel. “Keep a look out this afternoon for crude oil inventory data as this could lend further direction”, Ms Marshall suggests.