The UK has seen a fall in wind generation, dropping down to just 0.6GW this morning and nuclear has remained below 6GW, the daily market report states.
That has led to a “slightly tighter margin” on the power front, standing at around 9.7GW but it is still “quite comfortable” for this time of the year, Sarah Marshall, Client Portfolio Manager at npower said.
The gas system has also seen a “little tightness” this morning, with the line pack currently forecast to close around three million cubic meters short.
Despite that however, she said: “Gas contracts are generally trading down on yesterday’s close due to the Langeled flows picking back up to 62mcm following the sharp reduction we saw yesterday. In response to this as well, we’ve seen withdraws from Rough really reduce after the storage system kicked in yesterday to cover the shortfall.
“LNG (Liquefied Natural Gas) flows have picked up to 10mcm however we still have no LNG tankers on the horizon for the UK.”
Demand is around 10% below seasonal normal level, with the mild weather set to continue for the rest of the week – which will put some pressure on gas contracts, Ms Marshall said.
Oil has dropped to below $108 a barrel this morning “due to demand concerns”.
“This is following weak Chinese data released earlier in the week and also expectations ahead of US crude oil inventory data which is due this afternoon”, she adds.