Oil prices rise – DMR

Oil prices have increased to the “biggest weekly” rise since August, according to npower’s daily market report. Brent oil is currently trading at $35 per barrel (£23.8/bbl). Gemma Bruce from […]

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By Jacqueline Echevarria

Oil prices have increased to the “biggest weekly” rise since August, according to npower’s daily market report.

Brent oil is currently trading at $35 per barrel (£23.8/bbl).

Gemma Bruce from the Optimisation Desk said: “Russia and Iran are reported to be holding talks about production levels ahead of a producer meeting next month to discuss the proposed output freeze.

“However, there is still much skepticism around such talks with experts stating that US production cuts are much more likely to be the source of future support to the oil market.”

The UK gas system is balanced and the linepack is forecast to close 3.5mcm as demand continues above seasonal normal levels due to cooler temperatures.

 

Norwegian flows through the Langeled pipeline are at 61m and the BBL pipeline is flowing at 22mcm.

Ms Bruce added: “South Hook is at 49mcm, Rough is at 32mcm and we are seeing no exports to the continent through the IUK which has been the case all week.”

On the power system, the peak margin is forecast at 9.3GW.

Wind is generating 350MW but is expected to reach 1GW.

Ms Bruce went on: “As a result, there has been very little changes to the power stack with CCGT generation making up 44%, followed by coal at 24% and both the French and Dutch interconnectors importing to the UK at full capacity.”