Market Report

This morning, prompt gas contracts are trading higher, as a number of supply restrictions impact the market. NCS flows are reduced by ongoing work at the Nyhamna field, cutting output by 15-25mcm until Sunday. Elsewhere, maintenance at the Rough storage facility has been completed in part with withdrawal capacity returning to service. The return to full injection capacity is subject to further testing, with the facility in withdrawal mode for at least 26 hours from midday today. Total NBP supply is nominated at c.227mcm, with UKCS, NCS and LNG comprising the majority of flows at c.102mcm, c.47mcm and c.50mcm respectively.

Further out, gas contracts are trading higher, taking sentiment from the prompt, with Long Range Storage levels below that of 2015. Meanwhile, Brent Crude adds further support, rising above $45.50/barrel amid disruption to production at the Canadian oil sands as a result of wildfires and concerns over Libyan output following increasing civil tension.

The UK power market has seen limited activity this morning. Contracts for delivery next week saw the largest increase in the previous session as a result of forecasts suggesting a drop in solar and wind output, reducing peak generation capacity. Wind output is currently forecasted at 3GW, whilst nuclear generation has fallen below 7GW following the unplanned maintenance at Dungeness B.