Gas prices have increased due to tomorrow’s forecast of colder temperatures and lower wind generation, according to npower’s daily market report.
The gas system is balanced but is expected to close 4mcm short and demand is 6% below seasonal normal levels.
Exports from the Interconnector stand at 11mcm, Norwegian flows at 26mcm and South Hook flows have increased to 28mcm.
Client Portfolio Manager at npower, Sarah Astley said: “Further heavy Norwegian maintenance due to start next week could see the system struggle to balance.”
The power peak margin is still very healthy, she added. Wind is generating around 4.6GW of power but it is expected to drop to 1GW tomorrow which will support gas demand.
Oil is trading at just above $65 a barrel (£42/bbl).