Oil prices fall to 12-year low – DMR

Oil prices have dropped to a 12-year low, according to npower’s daily market report. A barrel of Brent is currently trading at $32.5 (£21.4/bbl). Ben Spry from the Optimisation Desk […]

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By Jacqueline Echevarria

Oil prices have dropped to a 12-year low, according to npower’s daily market report.

A barrel of Brent is currently trading at $32.5 (£21.4/bbl).

Ben Spry from the Optimisation Desk said: “This is following turmoil in Chinese markets. China’s Central Bank reduced the onshore Yuan fixing to the lowest since March 2011. This led to a sell-off closing the Chinese stock exchanges. As the world’s biggest oil consumer, any reductions in demand will greatly lean on prices in an increasingly oversupplied market.”

In the UK, the gas system’s linepack is 28mcm long.

Norwegian flows through the Langeled pipeline are at 70mcm and Rough is flowing 42mcm.

 

LNG send-out from South Hook is at 27mcm and a new tanker is due to arrive in the UK tomorrow.

Temperatures are currently 2°C above seasonal normal levels but are forecast to fall next week.

On the power system, margins are forecast at 11GW later today.

Wind is generating 5GW and is expected to reach up to 7GW.

Mr Spry added: “The French interconnector continues importing at 75% of capacity as 15% remains on the continent in line with European demand. The Dutch interconnector is importing at full capacity of 1GW.”