Wednesday 6 April 2016

Gas prices higher – DMR

Gas prices higher – DMR

The UK gas prices have opened “a touch higher”, according to npower’s daily market report.

There has been "very little change" to the fundamental mix for both power and gas, said Gemma Bruce from the Optimisation Desk.

On the gas system, the linepack is forecast to close 10mcm long.

Flows from Norway and the Netherlands have changed “a little” compared to yesterday but exports through the UK Interconnector are more than 23mcm.

Ms Bruce added: “This is however being offset by lower power station demand.”

On the power system, wind is providing 12% of the stack.

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Ms Bruce went on: "Despite these healthy levels, wind generation is still disappointing, falling short of forecasts by over 1GW but we still expect wind contribution to track higher across the morning, peaking at over 6GW by this afternoon."

Brent oil is currently trading at $38.59/bbl (£26.6/bbl).

Ms Bruce said: "Oil has been relatively volatile in recent weeks and is likely to remain that way in the lead up to the meeting between OPEC members on the 17th of April around a production freeze. Following comments from Saudi Arabia at the end of last week, Kuwait’s governor weigh in on the debate yesterday saying that a freeze could still be reached without a commitment from Iran. Prices reacted upwards following this."

Written by

Bruna Pinhoni

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