UK gas prices have fallen slightly, according to npower’s daily market report.
That’s because the system is oversupplied, with the linepack forecast at 24mcm long and demand is 6mcm below seasonal normal levels.
However, weather forecasts show temperatures across the UK and Europe are expected to be few degrees below average for this time of the year.
There aren’t LNG tankers expected to arrive in the UK this month.
Nicholas Morgan from the Optimisation Desk said: “UK spot prices have come off slightly which could explain the lack of nomination.”
The power system is “reasonably” comfortable. However the French Interconnector is still operating below its capacity levels as nuclear outages in the country continue.
Wind is expected to generate 2GW today.
Brent oil is currently trading at $51/bbl (£40.8/bbl).
Mr Morgan added: “US oil rigs have climbed back up to levels seen in February this year around the time Brent oil was trading at around $30/bbl (£24/bbl).
“There is a bilateral meeting in Istanbul this week between OPEC and Russia. It is seen as an important step forward towards agreeing a production cut. No word yet of the US involvement with the cut.”