Oil prices hit new high – DMR

Oil prices have hit the highest for the year due to Libya’s output slowing down, according to npower’s daily market report. Oil is trading at more than $68.20 (£45) a […]

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Oil prices have hit the highest for the year due to Libya’s output slowing down, according to npower’s daily market report.

Oil is trading at more than $68.20 (£45) a barrel after protests stopped crude flows to the eastern Libyan oil port of Zueitina, which prevented exports.

The protesters closed the pipeline to the port as they demanded jobs, Client Portfolio Manager at npower Alex Guiot said.

He added: “This could force several oilfields in Eastern Libya to close.

“Libyan oil output is now below 500,000 barrels per day which is a third of what Libya pumped before 2010.”

 

The gas markets have opened up well supported due to undersupplied gas.

Mr Guiot said gas demand is at a four-day high, however, “it is expected to fall as weather conditions become more settled”.

The power system is comfortable. However, wind generation is producing 4GW instead of the expected 5.5GW and solar generation is expected to provide just 2.4GW.