Friday 27 June 2014

Brent oil poised for ‘first weekly fall since Iraq violence’

Brent oil is headed towards one of its largest weekly falls since the violence in Iraq this month, according to the weekly market report from npower.

It is currently trading at around $133 (£78) per barrel, Client Portfolio Manager Gemma Bruce (pictured) said.

Looking at the gas and power markets, she added: “[They] opened roughly flat this morning as there’s been very little fundamental change from yesterday.

“The gas system has opened in length as withdrawals from storage are offsetting strong exports to the Continent via the Interconnector.”

[youtube url="https://www.youtube.com/watch?v=BeOjuUBHtHY" width="575" height="323"]

 

The power system remains “very comfortable”, with the peak margin more than 15GW earlier this morning.

Gas-fired generation “continues to be dominant” as wind generation is “very subdued” at around 1GW.