Power and gas prices lower – DMR

The UK power and gas prices are lower, according to npower’s daily market report. The gas system is forecast to close 18mcm short and demand has increased to 27% above […]

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By Jacqueline Echevarria

The UK power and gas prices are lower, according to npower’s daily market report.

The gas system is forecast to close 18mcm short and demand has increased to 27% above seasonal normal levels.

That’s because exports via the UK Interconnector increased to 38mcm.

Sarah Astley from npower’s Optimisation Desk said: “Flows are also lower today with Langeled dropping 15mcm to 50mcm due in part to an unplanned outage which is impacting around 10mcm. LNG flows remain stable with net flows of 57mcm.”

 

On the power side, peak margin is forecast below 8GW due to higher demand.

Wind is generating above 2GW.

CCGT is once again the dominant fuel source currently generating nearly 37% of the UK stack, according to Ms Astley.

Oil prices are $3 below, currently trading at $50.5 per barrel.

Ms Astley said: “The key driver for this was that OPEC has increased its forecast supply for next year by 500,000 barrels per day as production from non-OPEC nations is set to fall. News that Chinese imports were higher in September has helped to stem the losses.”