Gas and power markets up on close – DMR

Gas prices are currently trading higher than the previous close, with some front month contracts trading lower. Power contracts are up on the close despite a well supplied gas system and a strong pound. […]

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By Jonny Bairstow

Gas prices are currently trading higher than the previous close, with some front month contracts trading lower.

Power contracts are up on the close despite a well supplied gas system and a strong pound.

The linepack is predicted to be just under 34mcm long, according to npower’s daily market report.

Renewable power generation is healthy, seeing gas-fired power down.

With some continuing cuts to Norwegian supply, Langeled nominations are lower at 43mcm.

LNG send-out from South Hook is in line with nominations around the 16mcmn mark.

Cuts at Rough have been extended until tomorrow. This is driving the length in supply with the unexpected drop in injection demand.

 

Sam Hill at the Optimisation Desk said: “Peak power margins for today are around 9.5GW, wind generation is over 3GW. CCGT generation has dropped off to below 15GW, making up 44% of the stack.

“Coal and nuclear make up 6% and 25% of the stack respectively.

“Oil is trading at $50.02/bbl (£34.18/bbl). The technical support found at the $50/bbl mark will likely further boost prices.”

The pound has risen due to increased pro-remain sentiment in the EU referendum. The pound is currently valued at €1.285.