Oil prices push up to $51 a barrel – DMR

The price of oil has pushed up to $51 (£34.8) per barrel. This as US crude stockpiles are expected to fall, “easing the supply glut”, according to npower’s daily market […]

Register now!

By Priyanka Shrestha

The price of oil has pushed up to $51 (£34.8) per barrel.

This as US crude stockpiles are expected to fall, “easing the supply glut”, according to npower’s daily market report.

Sam Hill from the Optimisation Desk said: “Inventory data will be announced this afternoon and is likely to add further direction.

“Elsewhere the pound has held onto its gains associated with pro remain referendum sentiment from yesterday. The currency has flattened, this is likely as the markets hold its breath before the vote tomorrow. The pound is currently valued against the Euro at €1.30.”

Peak power margins are comfortable at just under 12GW. Wind generation stands at more than 1GW while gas production is at 16GW, making up 47% of the stack.

 

The Dutch interconnector is importing at full capacity while the French one is at around 75%.

Nuclear generation is also strong at 8.5GW, making up 25% of total production.

Mr Hill added: “Gas prices have opened up firmer this morning with power likely to follow, this is as the State Supervision of Mines concludes the Dutch Groningen field should be cut further.”

The current linepack for UK gas is forecast to be around 9mcm long. Demand is lower than seasonal normal levels in line with the warmer temperature outlook.

Cuts to the Norwegian gas field is keeping Langeled flows at close to 32mcm.