UK gas contracts are trading firmer this morning, according to npower’s daily market report.
That’s despite the system is oversupplied and expected to close 19mcm long.
Demand is still below seasonal normal levels and Langeled flows are at 54mcm supporting the oversupply system.
LNG send-out continues to be subdued with no new tankers to arrive in the UK.
Amardeep Ubhi from the Optimisation Desk said: “Power contracts are yet to get going but gas may provide the direction they are likely to go in.”
The peak margin is under 12.5GW, however peak demand is higher than yesterday expected to reach more than 40GW.
Wind is generating below 4GW and is forecast to pick up to 6GW later today.
CCGT is providing 18GW to the power mix and nuclear more than 7GW.
Mr Ubhi said: “The French interconnector is due to flow into the UK at under capacity again today, forecast to reach 500MW but the Dutch interconnector is flowing into UK at full capacity.”
Brent oil is trading at $50.52/bbl (£39.4/bbl).
Mr Ubhi added: “Oil prices have dipped from yesterdays close due to a rise in Iranian exports, which adds to a global supply overhang but a planned OPEC-led production cut later this year has offered some support to prices.”