The gas system in the UK is “a touch undersupplied” today, around 3mcm short.
Prices have opened “reasonably flat” this morning, according to npower’s daily market report.
Sam Hill from the Optimisation Desk said: “There has been an end to some cuts to gas flows which now sees the system more balanced, oil continues to rise – providing upside to prices and the pound, although volatile, appears reasonably range bound.”
Storage nominations are “almost non-existent”, with only Aldborough nominating more than 5mcm today. LNG send-out from South Hook is around 35mcm after reducing its nominations.
Peak power margins are at 11GW, with an improvement in wind generation, currently just below 5GW. It is expected to increase before it drops off again as forecast towards the end of the day.
The increase in wind production has taken some pressure off gas-fired power generation, which is making up 48% of the stack.
Mr Hill added: “Oil continues to climb and is set to have its biggest monthly gain this year. This is following news that US output has dropped taking some of the weight out of the supply glut. Oil is currently trading at $48.29/Bbl (£33/Bbl).
“The pound remains reasonably range bound this morning, it has dropped off slightly against the Euro in response to some positive European data out of France and Germany. More data announcements to follow today which will see further movement to the currency.”