Gas system oversupplied – DMR

The UK gas system has opened oversupplied this morning, according to npower’s daily market report. It is forecast to close 23mcm long as demand remains below seasonal normal levels. The […]

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By Jacqueline Echevarria

The UK gas system has opened oversupplied this morning, according to npower’s daily market report.

It is forecast to close 23mcm long as demand remains below seasonal normal levels.

The Langeled pipeline is importing at 71mcm and Balgzand Bacton Line (BBL) at 25mcm.

Gemma Bruce from the Optimisation Desk said: “LNG send-out remains muted as cargo arrivals have been few and far between the last month. However with two tankers scheduled to dock in the UK next week, we may see an increase in flows to help with the increased demand from colder weather.”

Power and gas prices remain firmer as temperatures are expected to be colder and below average for this time of the year.

 

The peak power margin is forecast to be 9GW despite very healthy wind output, which is currently contributing 5.8GW to the power mix.

Ms Bruce added: “The French interconnector continues to export at full capacity to France, reducing to just 500MW of exports over the evening peak, contributing to the tighter margins seen today.”

Brent oil is trading at $46.63/bbl (£37.30/bbl).

Ms Bruce went on: “Oil prices continue to inch higher this morning as OPEC boosts efforts to finalise a deal to cut production levels in efforts to stabilise the price of oil. We may see further direction later today following the release of US inventory data.”

The pound is worth €1.16.