The UK is expected to have a “comfortable” gas system this week, according to Inenco’s Y report.
An LNG cargo is to arrive this week following one which came in a few weeks ago.
Temperatures are expected to increase above seasonal levels, which will dampen the Local Distribution Zone (LDZ) demand as well as the UK Interconnector maintenance, which started a few weeks ago.
Energy Analyst Dorian Lucas said: “That’s basically seeing our exports to Belgium seize completely. That’s expected to continue this week which is again going to dampen our overall demand.”
There is a bit of “upward pressure” in the oil market due to air strikes in Yemen and Tropical Storm Bill in the Gulf of Mexico, which has been given a probability of around 70% of it developing into a hurricane, he added.
Mr Lucas said: “Should that occur, we could see some disruption to US oil production and potentially see that support prices.”
Short term contracts are trading at around 10-months lows and seasonal contracts are at “historical low levels”.