The UK power and gas markets have opened lower than last night’s close.
That’s as the “Brent oil market has come off” and the pound continues to strengthen, according to npower’s daily market report.
The gas system is expected to close 9mcm short as demand is forecast higher than seasonal normal levels.
Healthy send-outs from the LNG terminals have been further supported by an additional LNG tanker nominated for Dragon on 25th May. There are now four LNG tankers heading to the UK between 21st and 25th May.
The power system is currently being supported by “high levels” of gas-fired power generation. Wind generation is currently out-turning around 1GW and is expected to increase to highs of 4GW today.
The French and Dutch interconnectors are both exporting to the UK at their capacity levels of 2GW and 1GW.
Nicholas Morgan from the Optimisation Desk said: “The front month Brent oil contracts have come off this morning as the market digests the news coming out of America where stockpiles unexpectedly increased, keeping supplies at the most in more than eight decades. Furthermore, rain in Canada may help to slow the fires, prompting workers to return to work after being evacuated this week. The contracts are currently trading at $48.09/Bbl (£32.8/Bbl).”