The UK power and gas fundamentals are comfortable, according to npower’s daily market report.
Gemma Bruce from the Optimisation Desk said: “With oil prices once again trading low, power and gas markets have opened softer with the front month power contract trading 39p lower than the close at present. Fundamentals remain comfortable and weather forecasts in both the UK and across Europe remain mild over the next few days, further adding to the bearish sentiment.”
The gas system is long with the linepack forecast to close 16mcm in length.
Langeled flows are at 56mcm while those coming from the Netherlands are at 14mcm.
LNG send out is below 30mcm and two cargoes are expected to arrive next week.
On the power system, the peak margin is expected to close at 14GW due to a slight drop in demand.
Wind generation is currently providing 4.5% of the stack but is forecast to reach more than 6GW tomorrow.
Ms Bruce added: “That should displace some of the less efficient gas units and in turn lower gas demand. Both the French and Dutch interconnectors are currently importing to the UK just shy of their maximum capacity.”
Oil is currently trading at $37.35/bbl (£25.77/bbl).