Wednesday 20 August 2014

Brent oil price hovers around 14-month low

Oil prices this morning hovered near the lowest price in 14 months, according to npower’s daily market update.

Gemma Bruce, Client Portfolio Manager at the supplier’s Optimisation Desk said: “Brent oil continues to hold around a 14 month low, just below $102 per barrel.”

Oil prices could dip, she added: “Easing worries about geopolitical tensions and ample supply put prices at risk of further losses.”

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On the gas and electricity front, the UK market opened with lower prices this morning.

Ms Bruce said: “No geopolitical news around the Russian saga continues to be taken as good news, with the front-month power contract looking set to open around 50p lower than the close [yesterday].”

Similar trend can be seen on the gas market, she said.

Gas demand is above normal levels for this time of year after slightly cooler temperatures, with a pick-up in gas fired generation also adding to higher demand, according to the analyst.