Gazprom’s announcement to delay the demand for Ukraine prepaying for gas supplies has been the “main driver” for prices today, according to the daily market report from npower.
The Russian energy giant has given Ukraine until next Monday to pay for gas after it made a part payment of $786 million (£469m) for February and March.
“This has pressured prices quite significantly this morning, with the front month gas contract trading over a penny below the Friday’s close”, Client Portfolio Manager Sarah Marshall said.
Looking at the gas system, she added Langeled and BBL flows have picked up to around 24 million cubic meters (mcm) and 22mcm respectively. South Hook flows remain strong at around 47mcm and two additional tankers are due to arrive this weekend.
On the power front, the margins look “healthy”, with the peak power margin forecast at around 12.5GW today.
“Oil remains supported just below $110 a barrel today, which is following strong Chinese manufacturing data”, Ms Marshall added.