The UK gas system went “long” this morning putting pressure on gas contracts according to today’s Daily Market Report.
Tom Mathews, Client Portfolio Manager at npower said: “Most of the gains we’ve seen yesterday shed this morning on power and gas.
“The main driver for this is the gas system has gone long. Issues in Norwegian supply have been resolved and we’re seeing a fair bit of gas being pulled from storage.”
Carbon prices continued to be stronger, he added: “The only support from the market today was strong carbon price and a strong euro. Carbon gained significantly yesterday, at times touching seven euros a tonne.
“The main driver for this has been the proposed fast-tracking of the [EU Emissions Trading Scheme] backloading plans being approved in the Eurozone parliament yesterday.”
Back-loading may start as soon as March, he added.
Strong thermal, nuclear and wind output kept power margins comfortable this morning.