The power margins in the UK are tighter today, according to npower’s daily market report.
That’s as wind generation has tailed off to “virtually nothing” but forecasts indicate a sharp ramp up overnight. It is expected to reach a peak of 4.5GW.
The gas system has opened in length and is forecast to end the day just above 10mcm oversupplied.
That’s despite an increase in demand to a touch above seasonal normal levels due to higher exports to the continent through the IUK pipeline.
Gemma Bruce from the Optimisation Desk said: “Gas prices have opened a touch firmer following the sell-off late in the session yesterday although activity on the curve has been slow to get going. Power prices look set to follow the gas and open firmer with peak margins tighter as wind generation tails off and the French interconnector is in export mode for most of the day.
“Oil prices continue to trade above $51/bbl (£41.7/bbl) as Russia hints that they are making progress towards an agreement with OPEC. Gains are however being kept in check by indications that US crude stockpiles increased last week.”