The gas system has opened oversupplied, according to npower’s daily market report.
The linepack is currently forecast to close 9mcm long. That’s despite demand being supported by storage injections and strong exports to the continent.
Langeled [Norwegian] flows continue to be healthy at more than 40mcm.
Gemma Bruce from npower’s optimisation desk said: “However [flows] are likely to reduce from tomorrow once the Troll [gas field] maintenance is underway.”
LNG output remains stable at 30mcm following the arrival of a tanker at the South Hook terminal yesterday. Ms Bruce added: “Another tanker has been confirmed for the UK which is due to arrive on the 10th July.”
Power margins have increased today with the peak forecast at 13.7GW.
Gas-fired generation continues to dominate the stack. This is making up for “very low wind feed-in” which currently at 300MW. Ms Bruce went on: “However is expected to ramp up to over 4GW overnight into the weekend.”
Ms Bruce said oil has “lost a bit of ground this morning” due to an increase in US rig count and “Chinese regulators opening an investigation into suspected market manipulation” – which has increased fears of oversupply.
She added: “All eyes will remain on Greece this weekend with the referendum due to take place. Early polls suggest the supporters of the bailout terms have taken a wafer thin lead over the no voters.”