Brollies up today but gas prices put down – DMR

The week may have opened wet and rainy – but predicted “warmer and windier” weather pushed down gas prices for the near future this morning. Sarah Astley, Client Portfolio Manager […]

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By Vicky Ellis

The week may have opened wet and rainy – but predicted “warmer and windier” weather pushed down gas prices for the near future this morning.

Sarah Astley, Client Portfolio Manager at npower’s Optimisation Desk said: “We’ve seen the day-ahead gas contract open a penny a therm lower than Friday’s close.”

She said this “weakness” is mainly from forecasts of a rise in temperature and more wind over the next few weeks.

More gas is also streaming to the UK via the underwater pipeline from Norway, she added: “We have seen Langeled flows pick up to around 67 mcm (million cubic meters).

“This is following lower flows from Langeled towards the end of last week due to outages [at gas rigs] on the Norwegian continental shelf.”

A “tight” margin is forecast for today on the power front, said Mrs Astley, with nuclear generation dropping, while wind is generating 3GW.