Gas and power prices firmer – DMR

The UK gas and power prices are trading firmer this morning, according to npower’s daily market report. On the gas system, the linepack is forecast to close above 5mcmc long. […]

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By Jacqueline Echevarria

The UK gas and power prices are trading firmer this morning, according to npower’s daily market report.

On the gas system, the linepack is forecast to close above 5mcmc long.

Flows from the Lageled pipeline at 75mcm, Dutch interconnector imports and storage nominations from Rough and Alborough are also driving length in the system.

Sam Hill from the Optimisation Desk said: “Temperatures are a couple of degrees above seasonal normal levels in contrast to the colder temperatures on the continent and are suppressing demand, which is almost 20mcm below seasonal normal levels.”

 

The peak margin is below 11GW and wind is generating at 3.5GW, however it is expected to drop off later today.

Coal generation is at 5GW and CCGT is below 24GW.

Mr Hill added: “With the colder temperatures and demand remaining on the continent the Dutch and French interconnectors continue to export.”

Brent oil is currently trading at $54.33/bbl (£43.71/bbl).

Mr Hill went on: “Oil prices did pick up yesterday following US inventory data which saw a fourth weekly decline in US stockpiles. This was however short-lived as gains in the dollar countered the movement, as dollar based commodities became more expensive.”

The pound is valued at €1.19.