UK markets open lower this morning

Gas markets in the UK opened lower this morning according to today’s market report. Steven Walker, Client Portfolio Manager at npower’s Optimisation Desk said: “UK markets opened lower this morning […]

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By Vicky Ellis

Gas markets in the UK opened lower this morning according to today’s market report.

Steven Walker, Client Portfolio Manager at npower’s Optimisation Desk said: “UK markets opened lower this morning as Norwegian flows recover from 50 million cubic meters (mcm) yesterday to 68.5.”

He said issues at western Norway’s oil terminal Nyhamn “appear to be resolved” and a late move lower yesterday at European hubs will have encouraged additional flow today into the UK from Norway.

Gas demand is supported by aggregate UK storage at 17 mcm today, he said, adding: “This looks set to continue unless the within-day contract can gain some premium to the rest of the prompt.”

 

There’ll be a need for more gas supply next week, said Mr Walker because a 1p per therm increase “is currently priced into the forward curve.”

On the power front, French nuclear is set to be 3GW lower next week, potentially reducing imports through the French interconnector.