The UK gas system is “slightly short” today as a result of high demand and reduced flows from the BBL pipeline.
That’s according to the daily market report from npower, which suggests the gas system is running around three million cubic meters (mcm) short and demand has risen slightly – around 5mcm on yesterday’s level.
“That is putting some premium into the short term gas prices”, Optimisation Desk Manager Ben Spry said.
Wind output still remains “slightly weak” – less than 0.5GW – which could lead to demand for gas for power generation increasing through the day, he added. However, the peak margin for power is “very comfortable”.
Brent oil is around the same level as yesterday – just under $114 (£67.2) a barrel.
Mr Spry suggests keeping an eye on the housing and manufacturing data out from the US “and how they could impact Brent oil and the curve prices for gas and power”.