Gas prices in the UK today were significantly lower while global oil prices were at a four year low, according to the Daily Market Report from npower’s Optimisation Desk.
Client Portfolio Manager Alex Guiot put this down to several factors, one being the gas system forecast to close 5 million cubic meters (mcm) “long”.
He said several gas and power outages at processing plants Teeside and Barrow also ended today, meaning gas imports from the UK Continental Shelf are back to “healthy levels”.
Unusual weather is also a factor, Guiot added: “With the mild temperatures, demand is currently 12% below seasonal normal levels.”
On the oil front, the international benchmark price, Brent crude, dropped to its lowest level since 2010.
The analyst linked this in part to the oil group OPEC’s belief that demand for its oil will fall next year.