Gas prices are looking firmer despite a well-supplied system and a slight dip in oil.
Continued weakness in the pound and concerns over supply margins for the winter period are driving upside, according to npower’s daily market report.
Forecasted demand is below seasonal average levels.
Healthy Norwegian flows through Langeled – close to capacity at 70mcm – are supporting the length in the system, making up for the lack of storage withdrawals and LNG send-out.
Peak power margins for today are just above 11GW, with wind generation at around 4GW.
Nicholas Morgan from the Optimisation Desk said: “Oil prices have continued to slow following an increase in US production as a result of increased drilling. This coupled with Iran’s intentions to boost production by four million barrels a day adds to the supply glut and may put a spanner in the works for OPEC’s planned production freeze. Oil is currently trading at $51.63/bbl (£42.3/bbl).”
Fears of a “hard Brexit” result in negotiations is driving a retreat in the value of the pound, which is currently valued against the Euro at €1.10.
Market trends and the effects of Brexit will form part of the discussions at the Energy Live 2016 conference on November 3rd in London. Limited free tickets available for energy end users and university students.