Both the gas and power systems in the UK are “very comfortable” today, according to the daily market report from npower.
That has led to short term gas and power trading “a little bit lower” this morning, Optimisation Desk Manager Ben Spry said, with the line pack predicted to close around eight million cubic meters (mcm) long.
Flows into the UK are also “very healthy”, including imports from both Holland and Norway.
Wind generation has dropped from yesterday’s levels while gas-fired power plants are accounting for more than 50% of UK’s generation mix, Mr Spry said. Coal production has also dropped, delivering less than 6GW.
Brent oil hit “two-year lows” yesterday – just under $106 per barrel – but has risen to around $106.30 a barrel today.
“That’s on the back of better data out of China. We’ve got Chinese Q2 GDP which was better than expected and also figures showed China’s oil consumption is the highest in 17 months”, Mr Spry added.
He suggests keeping an eye out for UK employment data today “which could drive the value of the Pound against the Euro and that can impact short term gas and power prices”.