The UK gas and power markets have “nudged” up higher this morning, according to the daily market report.
The main factors are the warmer overnight temperature forecast, continued Euro-Sterling decline and Norway’s production returning, said Steven Walker, Client Portfolio Manager on npower’s Optimisation Desk.
“Front month power is currently trading at £40.75/MWh up from £40.50/MWh at last night’s close. The corresponding gas contract is trading at 49 pence per therm,” he added.
Gas demand rose to 28 million cubic metres (mcm) assisted by a fall in wind generation which is down from almost 7GW yesterday, the analyst said.
Mr Walker said Brent oil rose above $60 overnight as data showed US oil rig count fell to its lowest since August 2011.
He added: “It’s in contrast to government data indicating output actually increased to 9.2 million barrels a day, the highest since 1973.
“That was under the expectation operators have shut in the more marginal wells to focus on areas with lower production costs. Yesterday’s EIA number indicated an inventory build of almost eight million barrels, twice the expected increase.”