Tuesday 23 August 2016

Gas system comfortable – DMR

The UK gas system is comfortable this morning, according to npower’s daily market report.

The linepack is forecast to close 4mcm long as flows from St Fergus and South Hook have increased.

On the power system, the peak margin is expected to be above 13GW.

CCGT is providing 56% of the stack while nuclear is contributing 26% of the energy mix.

Alex Guiot from the Optimisation Desk said: "Wind generation will be a little subdued today compared with yesterday as we see forecasts showing a peak of 2GW in the evening. Wind is currently out-turning 0.4GW. Solar generation looks set to ramp up today as we see warmer weather with the peak being forecast at 6.3GW, up almost 3GW from yesterday."

[youtube url="https://www.youtube.com/watch?v=nY3G-AxX3gY" width="575" height="323"]

 

Brent oil is trading at $48.90/bbl (£36.6/bbl).

Mr Guiot added: "Oil extended declines after the biggest loss in three weeks before US crude inventory data and as the market awaits comment from the Nigerian Government on a proposal by militants to end hostilities. Chinese authorities have ordered hundreds of factories to curb activity ahead of the G20 summit in early September, in a bid to ensure blue skies when the red carpet is rolled out.

"This curtailment may cut petroleum demand in the world’s second biggest oil consumer by 250,000 barrels a day in the third quarter. There are also reports that Iran will be unlikely to support an oil freeze even when its production reaches pre-sanctions levels while other OPEC countries continue to boost supply."