UK gas prices have opened firmer across the curve, according to npower’s daily market report.
That’s because the system is comfortable and is expected to close balanced as demand is forecast to out-turn 5mcm above seasonal normal levels. This trend is forecast to carry on into next week.
Nicholas Morgan from the Optimisation Desk said: “Temperatures are looking like they will out-turn one degree below seasonal normal levels adding to the fairly bullish outlook for gas today.”
Power prices are likely to follow direction from the gas market, with the system forecast to be tighter with the peak margin at around 8GW.
Gas-fired power generation is making up 58% of the energy mix.
Wind is generating 2GW but is expected to reach more than 5GW later today.
Mr Morgan added: “Brent oil markets have held their gains recently as it has emerged Russia may be unwilling to join the OPEC production cut. Analysts are predicting oil will not drop below $45/Bbl (£36.4/bbl), the market is currently at $52/Bbl (£42.12/bbl).
“This is mainly due to the potential upside shock the market could experience with an agreed cut. The main obstacles remaining is how the cut is divided up amongst the members and other producers who are willing to take part in the cut.”
The pound is currently valued at €1.11.
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