The power system is slow to get going today, with price direction coming from gas contracts trading lower across the curve, according to npower’s daily market report.
The gas system for the UK has opened 37mcm long, despite high demand forecasted. This is aiding any downside with upward oil momentum and a weaker pound providing upside risk.
Healthy flows from the continent and storage withdrawals are supporting the long system.
LNG send out from South Hook is low at just under 10mcm.
Temperatures are just below seasonal normals, a theme that is likely to continue until the end of the month.
Sam Hill from the Optimisation Desk said: “Peak power margins are expected to be just below 10GW later today.”
He added: “Wind generation is just below 4GW and has further scope to ramp up during the day. CCGT generation is around 20GW, 47% of the stack, with further support coming from coal at 6GW and nuclear at 8GW.”
Oil prices have risen to €47.54/bbl (£38.51/bbl) as Iran and Iraq signal further co-operation.