The gas system has opened 24mcm oversupplied, according to npower’s daily market report.
That’s due to Gassco ending outages at Norwegian gas fields Kollnes, Valemon and Sleipner.
Alex Guiot from npower’s optimisation desk said: “Total demand hasn’t picked up with temperatures in [the] UK being 1.5 °C above seasonal normal level.”
The UK’s Interconnector exports are “a touch lower” but temperatures in mainland Europe are also suppressing gas demand. The Dutch Balgzand Bacton Line pipeline is importing 18mcm which has resulted in 12mcm of net exports to the continent today.
South Hook is nominating 45mcm today which is “something largely expected given inventories are 80% full and a tanker has docked yesterday”, Mr Guiot added.
Storage sites have very small net withdrawals today but there is healthy supply from Norway with Langeled flowing 60mcm.
The peak power margin is just below 10GW despite high wind generation.
Mr Guiot went on: “Wind is not meeting its latest forecast but is still out-turning 5.4GW and is expected to stay around this level until tomorrow night.”
As a result CCGT demand is suppressed and providing 32% of the stack. Solar forecast is expected to out-turn above 2.3GW this afternoon.
Oil is currently trading at $44 a barrel (£29/Bbl).