UK gas contracts are trading firmer due to the weakness in pound which provides upside risk, according to npower’s daily market report.
Amardeep Ubhi from the Optimisation Desk said: “Sterling crashed yesterday with fingers being pointed at Chancellor Hammond’s comments on the Bank of England quantitative easing and his belief EU countries would seek to punish the UK in impending EU negotiations.”
The pound is valued at €1.11.
The gas system is balanced due to low demand as temperatures are above seasonal normal levels.
On the power system, the peak demand is lower than yesterday at 44GW and the margin is at 8.2GW.
Wind generation is at 2.8GW and is forecast to reach 4.6GW later today.
Brent oil is currently trading at $50.08/bbl (£41.06/bl)
Mr Ubhi added: “API [American Petroleum Institute] data showing an increase in crude stockpiles have weighed on oil prices, currently trading in the $50 range. Official EIA [Energy Information Administration] data out later today will provide further direction for oil prices.”