Brent oil is currently trading at $50.13/bbl (£34.5/bbl).
That’s because US domestic crude reserves and production have declined.
Alex Guiot from the Optimisation Desk said: “The US crude supplies were down by 1.4 million barrels for the week ending May 27th, according to the EIA report.
“At the Vienna meeting, OPEC decided against implementing a cartel-wide production limit and did not push any agreement to cap oil production. In the long term, the Saudi energy minister foresees a potential shortage leading to a price spike that may turn counterproductive to the long term stability of oil prices.”
The UK gas system is 3mcm short.
The Aldbrough storage facility has come online today and is nominating at 6mcm.
Mr Guiot added: “This is an indication of the high gas prices and very little in the way of LNG tankers heading to the UK. The disruption in France could change this going forward as strikes being held at major LNG terminals may have an impact on any LNG tankers heading their way.”
On the power system, the peak margin is at 13GW and wind is generating 2GW.
Gas-fired generation is at 17GW providing 50% of the power mix.
The pound is currently worth €1.29.