Oil and coal still on a downward trend – DMR

Oil and coal prices continue to slide today according to the daily market report. Brent is currently trading at $52.20 (£34.37) per barrel, while coal is down with $64.00 (£42.14) […]

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By Taryn Nixon
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Oil and coal prices continue to slide today according to the daily market report. Brent is currently trading at $52.20 (£34.37) per barrel, while coal is down with $64.00 (£42.14) per tonne.

Tim Carter, Client Portfolio Manager on the Optimisation Desk at npower said: “Oil and coal prices continue their slide to dampen any rise in prices in the power and gas markets.”

Lower temperatures see the demand for gas shift slightly higher, with the UK gas system – the Linepak – forecast to close at around 17 million cubic metres (mcm) short today.

The gas system “shortness” comes despite similar demand levels as yesterday. The analyst put this down to ongoing outages from Norwegian gas rigs which are cutting flows to the UK from Norway’s pipelines by around 18 mcm.

Wind generation picked up to around 4 gigawatts today and is expected to rise to around 6 gigawatts tomorrow, added the analyst.