The UK gas system has opened 4mcm short today, according to npower’s daily market report.
Demand is at seasonal normal levels while temperatures are a few degrees below average for this time of the year.
However, they are expected to improve and go back to above average during the weekend.
Nicholas Morgan from the Optimisation Desk said: “Traded prices across the gas curve have found some support since last night’s close, the power market is yet to get going but is expected to follow the gas market given the opening indicative offers.”
The power system is comfortable with the peak margin at 10GW.
Wind is generating 3GW and is expected to reach 5.5GW later today.
CCGT is providing 58% of the power mix.
Mr Morgan added: “The French connector is in complete reverse mode at 1GW importing capacity and the Dutch is exporting to the UK at it capacity level of 1GW.”
Mr Morgan went on: “Brent oil fell below $50/bbl (£41/bbl) on rising stockpiles in the US and OPEC disputes emerge.
“Iraq and Venezuela are said to yet agree what their cut will look like as these two members have increased production even further since the announcement was made.”
The pound is currently worth €1.10.
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