The gas system in the UK is “comfortable” today as it has picked up flows from the Netherlands, according to the Market Report.
That has led to contracts trading a “fair bit lower” compared to last Friday, says Tom Matthews (pictured), Client Portfolio Manager at npower.
There were limited gas flows into the UK last week as a result of an unexpected outage in a processing facility in Norway but Norwegian flows also remain strong today, he adds.
Mr Matthews said the power system is “comfortable” too, with the strong pick-up in gas generation compensating for wind energy.
Brent oil is trading at $109, with the main driver being “strong demand for heating oil in the US as temperatures have been below seasonal norm”.
Mr Matthews suggests keeping an eye on the gas system. He adds: “Look out for Norwegian flows after Wednesday as it may well be interrupted by the testing of compressors on the Troll field in Norway. That’s due to start on Wednesday and going forward for a couple of weeks. That may well have an impact on Norwegian flows so keep an eye on that story as any developments may well be a market driver.”