Brent crude oil fell “just below” $108 (£63.7) a barrel today, supported by Chinese imports jumping to a record high.
That’s according to the daily market report from npower, which also suggests there are supply concerns from Libya as the rebels have stated that two major oil export terminals are likely to remain closed for the time being.
Looking at the gas system, Client Portfolio Manager Sarah Marshall (pictured) said: “We’ve seen a touch of support to the prompt and near curve contracts as the gas system is currently forecast to close around 23 million cubic meters short.
“This comes as demand picks up to just above seasonal normal levels and also from BBL flows dropping down to just eight million cubic meters.”
Storage sites are expected to inject around 13 million cubic meters however it is projected to drop throughout the day “due to system tightness”.
On the power front, the peak margin is “slightly tighter than yesterday”, standing at around 13GW this morning. Wind power has dropped to just under 2GW and Combined Cycle Gas Turbine (CCGT) generation remains a dominant fuel source at more than 13GW, Ms Marshall said.
“The power and gas curves are a flat to a touch lower this morning as a stronger Pound against the Euro continues to weigh. This morning we saw weaker than expected German data which could lead to further weakness on the Euro”, she added.