Oil above $40 per barrel –DMR

Brent oil price continues to increase, according to npower’s daily market report. It is currently trading at $40.54/bbl (£27.56/bbl). Gemma Bruce from the Optimisation Desk said: “Gains are however being […]

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By Jacqueline Echevarria

Brent oil price continues to increase, according to npower’s daily market report.

It is currently trading at $40.54/bbl (£27.56/bbl).

Gemma Bruce from the Optimisation Desk said: “Gains are however being kept in check as US inventories tomorrow are expected to show another build despite the drop in active rigs.”

On the UK gas system, the linepack is forecast to close 7mcm short.

That’s because demand is at 314mcm which is higher compared to seasonal normal levels.

Langeled flows are at 71mcm and BBL is importing more than 24mcm.

An LNG tanker is expected to arrive at South Hook tomorrow and Dragon on Thursday.

 

Ms Bruce added: “On the global LNG front reports today have surfaced that Australia’s largest LNG project, Gorgon has started LNG production and expects to ship its first cargo next week.”

The power system is “slightly more comfortable” with the peak margin forecast at 7.2GW.

Wind is generating 3GW and is expected to drop to 2GW this evening.

CCGT generation is providing more than 47% of the stack.

Ms Bruce went on: “As was the case yesterday, the French interconnector is currently only importing at around half capacity to the UK and is not expected to reach the full 2GW until mid-afternoon. This is putting additional pressure on the thermal generation particularly gas which is having to ramp up to cover the shortfall.”