Gas and power prices firm – DMR

Power and gas prices have opened firmer this week. This is due to gains in the oil market, a weaker pound and tighter power margins forecast for next week, according […]

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By Jonny Bairstow

Power and gas prices have opened firmer this week.

This is due to gains in the oil market, a weaker pound and tighter power margins forecast for next week, according to npower’s daily market report.

The gas system is roughly balanced with the linepack forecast to close at just above 2mcm long.

Norwegian gas flows are fairly low at 27mcm and LNG send-out continues to be minimal at 5mcm, with no tankers on the horizon.

Withdrawals from storage are offsetting these shortfalls in LNG and Norwegian flows.

Power margins are reasonable at around 10GW due to a healthy 5GW of wind generation.

The French interconnector remains restricted and is currently importing just 400MW. The Dutch interconnector is still at full capacity.

Gemma Bruce from the Optimisation Desk said: “Elsewhere, oil prices have pushed above $51/bbl (£40/bbl) this morning ahead of US inventory data due to be released later today. Reports have suggested we are likely to see a decline in US stockpiles, hence the support in oil prices. We have also seen the pound continue to come under pressure today against the euro and this is due to worries over a hard Brexit course of action.”