Gas and power prices up – DMR

Gas and power prices have been affected as a result of the euro strengthening. Tim Carter from npower’s optimisation desk told ELN: “This increases the amount of gas bought from […]

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Gas and power prices have been affected as a result of the euro strengthening.

Tim Carter from npower’s optimisation desk told ELN: “This increases the amount of gas bought from the continent, which increases gas prices and in turn power prices too.”

It follows European leaders giving Greece until the end of the week to agree to a new bailout deal.

Mr Carter added: “Poor UK manufacturing data yesterday also helped to push the pair back down so the £1 is now worth €1.4.

“Unimpressive US employment data has also helped a small euro recovery against the dollar since yesterday afternoon.”

This has increased oil prices to around $66 a barrel (£43/Bbl).

 

UK prompt fundamentals are a little tight compared to yesterday.

Flows through pipelines are around 10mcm down on yesterday’s levels. LNG sendout and storage are relatively flat and demand is up.

Wind generation is healthy with around 4GW for most of the day.

Mr Carter went on: “But this will drop below 500MW by tomorrow afternoon so peak margins are healthy today but could tighten tomorrow with CCGT demand also likely to be higher.”