Gas and power prices a touch up – DMR

UK gas and power prices are a “touch up”, according to npower’s daily market report. The gas system is forecast to close 5mcm long due to healthy flows from Norway […]

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By Jacqueline Echevarria

UK gas and power prices are a “touch up”, according to npower’s daily market report.

The gas system is forecast to close 5mcm long due to healthy flows from Norway through the Langeled pipeline and continued send-outs from LNG terminals.

Nicholas Morgan from the Optimisation Desk said: “Weather temperatures are also flattening around seasonal normal levels meaning there has been a slump in demand, particularly in the domestic space.”

On the power system, the peak margin is at 14GW.

 

Wind generation is “healthy” and is expected to reach 4.5GW.

The UK and Dutch interconnectors are exporting at full capacity and gas-fired generation is providing 47% of the energy mix.

Brent oil is currently trading at $49.1/Bbl (£33.3/Bbl).

Mr Morgan added: “Brent oil prices rose this morning as turmoil in Nigeria, shale bankruptcies in the US and a crisis in Venezuela all contributed to tightening supplies. As these issues linger, we expect an increasing supply risk premium will be priced into the market.”