Friday 29 July 2016

Peak power margin comfortable – DMR

The peak power margin is forecast at around 13GW today.

That shows "how comfortable the power market is expected to run”, according to npower’s daily market report.

There is currently “reasonable” wind generation at around 1GW but it is not forecast to improve.

Gas-fired power plants will therefore need to continue to support the power system, it adds.

[youtube url="https://www.youtube.com/watch?v=BFUfYj_MQ5Y" width="575" height="323"]

 

The gas system is forecast to close 18mcm at length today while two more LNG tankers are due to arrive in the UK in the next few days.

Alex Guiot from the Optimisation Desk said: “Yesterday, we reported about the increased US crude and gasoline inventories which pressured oil prices further down. According to Goldman Sachs, the gain in stockpiles is not the catalyst for further declines in prices: those are indeed assessed as triggered by supply, not demand weakness.

“They argue that currently the USD is the primary driver to lower crude oil prices, along with a potential interest-rate increase by the Federal Reserve System. A scenario dragging prices to $35/bbl (£26.6/bbl) would only occur in case of a global demand slowdown or a sharp production rise in Nigeria or Libya.”