Gas prices firmer – DMR

The UK gas prices have opened firmer this morning, according to npower’s daily market report. The system is short as flows into the UK have declined and all the main […]

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By Jacqueline Echevarria

The UK gas prices have opened firmer this morning, according to npower’s daily market report.

The system is short as flows into the UK have declined and all the main mid-term storage facilities are offline.

Nicholas Morgan from the Optimisation Desk said: “These may well come back online later today as prices look to firm up although demand is expected to out-turn 2mcm below seasonal normal levels as a result of milder temperatures.”

On the power system, the peak margin is expected to reach 12GW.

Wind is generating 4GW and is forecast to reach 5GW later today.

 

The French interconnector is importing from the UK at around 0.7GW, while the Dutch one is exporting nearly 1GW.

Brent oil is currently trading at $54.08/bbl (£42.18/bbl).

Mr Morgan added: “Oil prices continued to slip this morning on persistent doubts whether a planned crude production cut led by OPEC and Russia would be deep enough to end a supply overhang that has dogged markets for over two years.

“OPEC and non-OPEC oil producers will meet this weekend in Austria’s capital to agree details of the output cut, which targets an overall reduction of around 1.5 million barrels per day.”

The pound is currently worth €1.177.