Oil prices are falling, trading now at $32/bbl, according to npower’s daily market report.
That’s despite yesterday’s announcement from Saudi Arabia and Russia to freeze oil output.
Alex Guiot from the Optimisation Desk said: “That does little to convince the market that the existing oversupply will come to an end anytime soon.”
The UK gas system is 10mcm undersupplied as demand is above seasonal normal levels at 330mcm.
Flows from Norway through the Langeled pipeline are at 67mcm.
Supply at the Rough and Holford storages is at 60mcm in total and four LNG cargoes are scheduled to arrive in the UK by the end of the month.
Mr Guiot added: “Temperatures are a touch warmer today, reducing domestic demand forecasts but there has been an increase in CCGT demand that counters this.”
On the power system, the peak margin is more than 10GW.
Wind is generating 2GW and is expected to drop to 1.2GW.
The French interconnector is also below capacity at 0.3GW.