Gas and power prices for near-term contracts are expected to remain low unless there is a sudden change and extended period of colder weather.
That’s according to Sammy Blay (pictured), Client Portfolio Manager at npower’s Optimisation Desk, who has also forecast lower gas requirement for the summer.
Presenting the latest market report, he said the oil market however could face pressure following the deal between Iran and the West, with the date announced for the first phase of lifting economic sanctions on OPEC’s second largest oil producer.
Last year Iran agreed to curb its nuclear activities in return for around $7 billion (£4.33bn) in sanctions relief.
Looking ahead, he said: “In the oil market, with the deal now in place with Iran, focus will now turn to Syria where negotiations are happening between major oil producers and consumer nations. Also vested interests from producers like Saudi Arabia and Iran as well as major consumers like the US and transit nations like Turkey. Hence, the outcome of any negotiations there will likely impact the wider energy market.”
Mr Blay added the UK continues to receive “fairly strong” levels of gas imports from Norway through the Langeled pipeline. Storage levels also remain “very healthy” and stands at 85% full compared to 78% last year.