Gas system undersupplied – DMR

The UK gas system is expected to close 5mcm short, according to npower’s daily market report. That’s because demand is 57mcm higher than seasonal normal levels and flows from Belgium […]

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By Jacqueline Echevarria

The UK gas system is expected to close 5mcm short, according to npower’s daily market report.

That’s because demand is 57mcm higher than seasonal normal levels and flows from Belgium into the UK are falling.

Healthy flows from Norway and Europe are supporting the UK gas system, while Centrica is expected to start withdrawing from the Rough facility later this week.

Nicholas Morgan from the Optimisation Desk said: “Cooler temperatures have out-turned 1.5°C below what they would normally be experienced at this time of year in the UK.”

 

Brent oil is trading at $55.03/bbl (£42.09/bbl).

Mr Morgan added: “Oil prices fell this morning as higher US rig count unsettled markets amid nagging concern that output cuts, planned as part of concerted action between producer club OPEC and Russia, might not be as big as initially anticipated.

“Russia on Friday reported average daily oil production of 11.21 million barrels per day for November – its highest in almost 30 years.”

The pound is valued at €1.19.