Gas and power prices open higher today – DMR

The UK saw prices higher across the power and gas markets this morning. This is due to demand for gas being about 10mc higher this morning than yesterday, as a […]

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The UK saw prices higher across the power and gas markets this morning.

This is due to demand for gas being about 10mc higher this morning than yesterday, as a result of lower wind feeding into the system.

Ben Spry, Optimisation desk manager at npower, said the gas market is around 3mcm short and “that’s just lending a little bit of support”.

 

He added the short fall was being made up from modest withdrawals from storage sites in the UK.

Mr Spry said: “We should see those increase slightly, just to balance the system by the end of the day.”

As expected, wind generation has fallen off overnight and is expected to continue to do so over the next couple of days as well. Some of this is being made up in solar, creating around  4 GW today.

He added: “This shows the prominence of that renewable feed-in that we’ve got at the moment in the UK generating stack.”

The curve shows little in the way of trade but those trades that have gone through in gas are showing a little bit higher than last night’s close.

Mr Spry added there’s been a resurgence in all markets recently and some production cuts in the US. But those gains have been capped overnight with “some really poor data out of China”.