Gas flows into the UK from the Netherlands have “reduced slightly” today as they have been diverted to other parts of Europe.
That’s because the temperature in North West Europe is expected to be “slightly cooler” in comparison to the UK, according to the daily market report from npower.
However, flows from Norway continue to be strong, Client Portfolio Manager Gemma Bruce said.
She added the gas system “opened at length again this morning” and is forecast to close 5.4 million cubic metres long.
On the power system, the peak margin has tightened slightly today and is currently at around 10GW as wind generation has dropped below 2GW this morning, according to the report. Wind generation is not expected to pick back up again until the end of Wednesday or early Thursday morning.
Looking at near curve prices, Ms Bruce said: “The gas market has opened at a discount once again as the comfort on the system pressures prices. On the power market however, we’ve seen liquidity very thin this morning and we haven’t seen any contracts on the near curve go through as yet although they do look set to open a touch lower following their gas counterparts.”
Brent is holding at around $109 (£65.2) a barrel which comes as “demand from heating in the US has picked up and we’ve also seen the weaker dollar lending a bit of support to the prices there as it becomes cheaper for people with stronger currencies to purchase that therefore pushing up demand”, she added.