The week may have opened wet and rainy – but predicted “warmer and windier” weather pushed down gas prices for the near future this morning.
Sarah Astley, Client Portfolio Manager at npower’s Optimisation Desk said: “We’ve seen the day-ahead gas contract open a penny a therm lower than Friday’s close.”
She said this “weakness” is mainly from forecasts of a rise in temperature and more wind over the next few weeks.
More gas is also streaming to the UK via the underwater pipeline from Norway, she added: “We have seen Langeled flows pick up to around 67 mcm (million cubic meters).
“This is following lower flows from Langeled towards the end of last week due to outages [at gas rigs] on the Norwegian continental shelf.”
A “tight” margin is forecast for today on the power front, said Mrs Astley, with nuclear generation dropping, while wind is generating 3GW.