The UK gas system is forecast to close 12mcm short, according to npower’s daily market report.
Nicholas Morgan from the Optimisation Desk said: “Demand on the gas system has picked up slightly since yesterday supported by cooler temperatures into next week, moving more towards seasonal normal.
“The weaker pound has also seen an increase in exports to Belgium through the IUK pipeline while flows from the mid-term storage facility Holford have picked up to 17mcm.”
The LNG facility South Hook is nominating at 32mcm as a tanker arrived yesterday and another one is expected on the 11th of April.
On the power system the margins remain comfortable with the peak expected to be 39GW.
Wind generation is very low at 0.2GW but is forecast to reach 3GW later today.
CCGT generation is providing 53% of the power mix.
Mr Morgan added: “Both the power and gas markets have been slow to open this morning with the few contracts that are trading having found some support as oil prices increase and the pound continues to trade sideways after the lows of yesterday. The gas and power fundamentals have also provided some support to prices as poor wind generation and cooler than previously forecasted temperatures increase gas demand.”
Brent oil is currently trading at $40.25/Bbl. (£28.1/bbl).
Mr Morgan went on: “Oil prices have found support over the past day as US oil stockpiles are reported to have dropped off from 9.6 million barrels per day to nine million. Speculation around the meeting of the major oil producers continues to affect the oil price with uncertainty surrounding the outcome.”