Gas and power prices higher – DMR

Gas contracts are trading higher than last night’s close, according to npower’s daily market report. That’s because demand is above seasonal normal levels and exports are increasingly leaving the system […]

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By Jacqueline Echevarria

Gas contracts are trading higher than last night’s close, according to npower’s daily market report.

That’s because demand is above seasonal normal levels and exports are increasingly leaving the system undersupplied.

The linepack is forecast to close above 13mcm short.

Sam Hill from the optimisation desk said: “Norwegian flows through the Langeled pipeline at 65mcm continue to support the system in the absence of LNG send-out and storage withdrawals.”

Power prices are also rising due to an absence of peak power in France which has closed five more nuclear sites for maintenance works.

The peak power margin in the UK’s system is tighter today at more than 8GW.

 

CCGT generation has increased to 21GW, making up 53% of the stack.

Wind is generating more than 2GW with coal-fired power generation above 4GW.

Mr Hill added: “The French interconnector is exporting with the Dutch interconnector on full import mode.”

Brent oil is currently trading at $52.29/bbl (£42.3/bbl).

Mr Hill went on: “We saw oil prices pick up yesterday following the US inventory data which saw a decline in stockpiles, trimming the glut. However an increase in oil refined products saw prices trickle off from the peak of over $53/bb (£42.93/bbl).”

The pound is valued at €1.11