Oil prices drop to lowest level since 2009 – DMR

Oil prices have dropped to their lowest level since 2009 due to poor economic data in China. That’s according to npower’s daily market report. It is trading at just $44 […]

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Oil prices have dropped to their lowest level since 2009 due to poor economic data in China.

That’s according to npower’s daily market report.

It is trading at just $44 a barrel (£28/Bbl). Coal prices are also down to around $52 a tonne (£33/tonne) – the lowest level since 2003.

The gas system is oversupplied and is forecast to close around 6mcm long today.

Ben Spry from npower’s Optimisation Desk said this is due to Norwegian flows through the Langeled pipeline being “a lot higher than Friday”.

 

LNG flows are at 48mcm. They “seem to be robust – maybe a couple of mcm lower than last week”, he added.

Mr Spry went on: “Power, as you’d expect, is relatively slow to open on a Monday morning. In terms of the power supply picture, it’s looking relatively healthy however peak margins have dropped below 10GW.”

Wind output today is “disappointing” and below 1GW and is set to stay low throughout the day but will pick up later this week.

Nuclear generation has picked up to 7GW and is currently contributing around 20% to the grid.