Market Report

This morning, prompt gas contracts are trading lower, as suppressed domestic demand leads to an oversupplied intra-day system. Maintenance restricting both injection and withdrawal flows at the Rough storage site has meant much of the excess supply has been nominated to export to Belgium, with only limited injection taking place. The maintenance is due to end between 9th and 11th May. Total NBP supply is nominated at c.254mcm, with UKCS, NCS and LNG comprising the majority of flows at c.105mcm, c.75mcm and c.43mcm respectively.

Further out, gas contracts are trading above settlement, in line with weakness in the pound sterling against the Euro. The Euro has made gains on the pound in the previous 3 sessions and continues the trend this morning. Meanwhile, Brent Crude trades below $45/barrel, pressured by concerns that increased Middle Eastern production will broaden global oversupply.

The UK power market has seen limited activity this morning. An increase in solar generation is forecast to reduce peak afternoon demand today and Thursday, due to its embedded nature in the UK system. Elsewhere, the end to maintenance at the UK-France Interconnector has enabled the UK to import a maximum 2GW through the pipeline. CCGT generation currently produces 15.4GW of supply, with wind providing a further 3.2GW.

Most places will enjoy a dry and sunny day today, with the best of sunshine for Wales, The Midlands and Southern England. Scotland will be cloudy at times especially later on with rain in the northwest at 3pm moving southeast during the evening. Temperatures will peak at 18 Celsius in the south