Oil price drops – DMR

The price of oil has fallen, according to npower’s daily market report. Sarah Astley from npower’s optimisation desk said: “Oil has lost ground as it is now trading below $57 […]

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The price of oil has fallen, according to npower’s daily market report.

Sarah Astley from npower’s optimisation desk said: “Oil has lost ground as it is now trading below $57 a barrel (£36/Bbl).”

It comes as data from the American Petroleum Institute showed a stock build of two million barrels.

Ms Astley added: “Official data is due this afternoon which should provide further direction.”

The UK gas system is “slightly undersupplied” this morning with the linepack currently forecast to close 4mcm short.

 

Langeled nominations are in line with yesterday’s levels. Ms Astley went on: “However we should see this start to ramp up from tomorrow when maintenance on the Troll [Norwegian] gas field is due to conclude.”

Net storage injections are lower this morning at around 8mcm.

LNG flows are stable at around 30mcm and there are two tankers due to dock in the UK by the end of the month.

There is little change on the power system today with the forecast peak margin at more than 10GW.

Wind remains subdued and is currently generating only around 0.5GW which is below what was forecast. A peak of more than 2GW is expected this evening.

Following strength earlier in the week, the pound lost ground against the euro yesterday afternoon, Ms Astley added.