Monday 9 May 2016

Gas prices higher – DMR

UK gas prices are higher this morning, according to npower’s daily market report.

Gemma Bruce from the Optimisation Desk said: “Gas prices have pushed higher across the curve this morning with the power markets slow to get going but those contracts that have traded are up on last week’s close.”

The system has opened balanced this morning, despite some outages which have reduced flows from Norway. Those from the Langeled pipeline are at 14mcm.

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Ms Bruce added: “Temperatures in the UK and across Europe continue to be above seasonal normal levels for today which is helping ease gas demand. However we can expect a change to temperatures as we progress through the week as forecasts suggest we will be back below seasonal normal levels by the weekend.”

Brent oil is trading at around $46/bbl (£31.7/bbl).

Ms Bruce added: “The colder temperatures, increase in oil prices and a weaker pound this morning are all feeding into the push up in prices. The fires in Canada have knocked out about one million barrels a day of production which is outweighing comments made by Saudi Arabia’s oil minister that they plan to maintain the country’s policy of near record oil output.”