Gas and power prices open firmer – DMR

Gas and power prices in the UK have opened “firmer” this morning. That’s due to a drop in the value of the pound and “a tick higher” in oil prices, […]

By Priyanka Shrestha

Gas and power prices in the UK have opened “firmer” this morning.

That’s due to a drop in the value of the pound and “a tick higher” in oil prices, according to npower’s daily market report.

The gas system is forecast to end the day 27mcm long.

Gemma Bruce from the Optimisation Desk said: “Strong flows through Norwegian Langeled close to capacity are supporting this, coupled with decent flows through Dutch BBL just above 33mcm.”

The peak power margins are forecast at 10GW, with wind generation “reasonably healthy” at 3.7GW. However it is expected to fall to 2GW this evening.

 

With the ongoing nuclear outages in France, the French interconnector is in export mode for most of the day, switching to import mode during the evening peak although not at maximum levels.

Ms Bruce added: “Oil prices have had some support this morning pushed higher by expectations of falling shale output and renewed optimism that OPEC will deliver production cuts.

“The pound has slipped against the euro and dollar this morning and with no real economic data having been released, analysts are speculating the move is down to profit taking.”