The UK markets have shifted higher again as a result of the Russian gas threats, according to the daily market report.
This week Gazprom threatened to cut supplies to Ukraine if it fails to pay for its gas deliveries.
Alex Guiot, Client Portfolio Manager on npower’s Optimisation Desk said: “With no resolution to the Russia-Ukraine gas dispute, prices have gained significantly this morning as this becomes an increasingly bullish driver.
“This obviously creates nervousness around European gas supplies and therefore supports prices. Any new development on this story today is very likely to be the dominant driver to European gas markets.”
The gas system is currently forecast to close eight million cubic metres (mcm) in length. Gas demand is lower today with gas-fired generation nominated at 24mcm and the overall system demand is around 6% below seasonal normal at 268mcm, the analyst added.
Wind generation “ramped up” today, currently at 5GW – 12% of the UK stack. With forecasts 1GW higher than the current level, there could be further increases across the day, he said.
March ’15 contract is trading at £44 per megawatt-hour (/MWh), £1.30 up from yesterday’s close and the summer ‘15 contract is currently trading at £44.45/MWh which is 0.40p higher.