Oil price drops – DMR

The price of oil has fallen, according to npower’s daily market report. It is now trading at $50 a barrel (£32/Bbl) – down from $51.50 (£33/Bbl) yesterday. Tim Carter from […]

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

It is now trading at $50 a barrel (£32/Bbl) – down from $51.50 (£33/Bbl) yesterday.

Tim Carter from npower’s optimisation desk said this is due to the “continuing pressure of global oversupply”.

UK gas demand is continuing at seasonal normal levels, at just under 150mcm, while overall supply is healthy with more than 12mcm in length.

Nominations from Norway through the Langeled pipeline have increased to nearly 40mcm.

 

LNG send-out has also increased to 26mcm. Mr Carter added: “With three cargoes confirmed for the South Hook in the next seven days it’s possible to see this pick up towards 30mcm.

Interconnector exports are roughly flat while storage injection nominations are at 17mcm.

The power system is healthy with a peak margin of 14GW. This is helped by generous wind generation forecasts of up to 6.7GW later today.

Mr Carter went on: “However with wind currently only generating 4GW, 2GW less than forecast, we may not see those levels out-turn later and the prompt power market may find a bit of support.”