Gas system opens undersupplied – DMR

The gas system has opened undersupplied today, according to npower’s daily market report. The linepack is currently forecast to close around 16mcm short. That’s largely the result of increased domestic […]

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By Priyanka Shrestha

The gas system has opened undersupplied today, according to npower’s daily market report.

The linepack is currently forecast to close around 16mcm short.

That’s largely the result of increased domestic demand as temperatures fall below seasonal normal levels.

Gemma Bruce from the Optimisation Desk said: “Gas markets have opened a touch firmer on the prompt due to the colder weather while the curve has opened lower than last night’s close although activity has been fairly limited so far this morning.

“Oil prices have dropped back below $46/bbl (37/bbl) this morning and we have also seen the pound gain some ground against the euro.”

 

The power margins are more comfortable today “as is normal for a Friday” as there is a slight wind down from industry early afternoon.

Wind generation remains healthy, currently at 4.8GW and should remain at this level across the day before declining steadily across the weekend.

Ms Bruce added: “The pound has pushed up against the euro today as global bank executives are softening their warning that the UK’s looming withdrawal from the European Union will spur an imminent exodus of staff from London. This comes as confidence grows that Theresa May will be able to negotiate a lengthy transition period providing more stability.

“Oil has extended its losses this morning as a rally in the US dollar offset optimism by Saudi Arabia that OPEC will be able to finalise a deal this month to curb production and stabilise prices.”