The gas system in the UK has opened oversupplied this morning.
That’s according to npower’s daily market report, which adds the system is 7mcm long as Norwegian outages are ending.
Nicholas Morgan from the Optimisation Desk said: “We are expecting the prices to be supported on the prompt by falling temperatures for the next weeks.”
Temperatures are forecast to drop below seasonal average levels this week.
On the power system, the peak margin is “very healthy” above 13GW. One of the reasons is the “very high wind generation out-turning 3.3GW”, helping reduce pressure on CCGTs and now providing 40% of the stack.
The French and Dutch interconnectors are importing close to capacity.
Mr Morgan adds: “Elsewhere Brent prices for the front month were trading within a large range. But on Thursday, more than the uncertainties following the UK´s decision to quit the EU, disappointing data on US crude stockpiles played the bearish role again, curbed bullish temptations and triggered another sharp drop.
“This might cap gas prices for a bit. Also the volatility on the currency market remains very high and we are not expecting these to calm down any time soon as the Brexit uncertainty prevailed.”