The price of oil has fallen, according to npower’s daily market report.
Tim Carter from npower’s optimisation desk said: “Oil prices have tumbled again today after the price surge across the bank holiday weekend.”
It is currently trading at $49 a barrel (£32/Bbl).
Mr Carter added: “API [American Petroleum Institute] data showed US inventories had a large unexpected build up of 7.6 million barrels last week and Iran has reiterated its desire to boost production when sanctions are lifted.”
Production is expected to increase by one million barrels a day by the 16th of March in a bid to reclaim market share. Mr Carter said this “should pressure prices in an already oversupplied market.”
Official US stockpile data from the Energy Information Administration is due out at 3.30pm. Mr Carter added: “[This] has been known to conflict with API reports so [it] could provide further direction this afternoon.”
The UK gas system this morning is currently forecast to close 2mcm long.
Forecast demand is higher today than it has been throughout the summer. This is due to temperatures dipping a few degrees below seasonal normal pushing up domestic demand.
The UK’s interconnector exports are nominated higher today with 49mcm due to be exported to the continent. CCGT demand is at 37mcm.
Mr Carter went on: “Supply is good, though particularly from Norway, with Langeled again nominated more than 70mcm – meaning total pipeline supply is more than 180mcm and LNG send out is at 35mcm.”
The pound is currently trading at €1.358.