Oil prices fall – DMR

Oil prices have dropped to $48.10 (£36.2) a barrel. That’s on the news that US inventory of crude increased last week, countering analyst predictions supplies would decrease, according to npower’s […]

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By Priyanka Shrestha

Oil prices have dropped to $48.10 (£36.2) a barrel.

That’s on the news that US inventory of crude increased last week, countering analyst predictions supplies would decrease, according to npower’s daily market report.

Nicholas Morgan from the Optimisation Desk states: “The forecast had been that US oil supplies to the week ending July 8th would drop by three million barrels however the American Petroleum Institute said late Tuesday that the inventory had actually increased by 2.2 million barrels.”

The pound is currently worth €1.20. It was “strongly supported by investors as Jean-Claude Juncker announced it would be a good thing to work with Theresa May”, Mr Morgan adds.

 

The gas system has opened “slightly undersupplied” this morning and is 11mcm short.

Demand is higher than expected on the back of cooler temperatures.

On the power system, peak margins are “very healthy” above 13GW.

Wind generation, like yesterday, is out-turning 1GW which is bit behind the latest forecast, states Mr Morgan.

The French interconnector is importing close to capacity while the Dutch one has halved.