UK gas and power prices are trading softer this morning, according to npower’s daily market report.
That’s because the gas system is oversupplied, with the linepack expected to close 22mcm long later today.
Demand is still in line with seasonal normal levels and temperatures are above average for this time of the year.
Sam Hill from the Optimisation Desk said: “Temperatures are however forecast to drop off below averages next week in the lead up to Christmas.”
Strong flows from the Langeled pipeline and Dutch interconnector are also aiding length to the system which is also supported by nominations from the Rough storage at 15mcm.
Mr Hill added: “There is an unexpected outage effecting Troll, however the within day effect of 4.8mcm is unlikely to have any significant effect on the system.”
On the power system, the peak margin is forecast at 10GW.
Wind is expected to reach 4GW later today.
CCGT generation is at around 25GW, making up 56% of the stack which is further supported by nuclear at 8GW and coal at above 6GW.
Oil prices are currently trading at $55.57/bbl (£43.34/bbl).
Mr Hill went on: “US stockpile levels and their increasing exports to the Asian market have taken some of the sting out of the freeze driven price spike.”
The pound is valued at €1.19.