Gas system undersupplied – DMR

The UK gas system is undersupplied, according to npower’s daily market report. It is forecast to close 5.8mcm short as demand is higher than average for this time of the […]

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By Jacqueline Echevarria

The UK gas system is undersupplied, according to npower’s daily market report.

It is forecast to close 5.8mcm short as demand is higher than average for this time of the year and flows from Belgium have dropped to 10mcm.

Alex Guiot from the Optimisation Desk said: “Temperatures will drop tomorrow and for the next 10 days around two degrees below seasonal normal levels.”

On the power system, CCGT is generating above 18GW, contributing 45% of the stack while wind generation is at 6.7GW.

However, it is expected to fall to 800MW tomorrow.

 

Mr Guiot added: “The French power system remains under pressure despite the warm temperatures they are experiencing. The interconnector is exporting at capacity while we are importing from the Dutch one.”

Brent oil is currently trading at $49.20/bbl (£39.36/bbl).

Mr Guiot went on: “Oil surged for a third day since OPEC members have made progress towards finalising a deal to cut output.

“Talks on assigning quotas to individual countries went well, as one of the previous issue was the inability of the countries to agree on their actual production level. If the deal is agreed, then we could see oil pushing towards $55/bbl (£44/bbl).”

The pound is valued above €1.17.