Tuesday 6 December 2016

Gas demand higher – DMR

Gas demand is higher than seasonal normal levels at 44mcm, according to npower’s daily market report.

That makes the system undersupplied with the linepack expected to close 5mcm short.

Nicholas Morgan from the Optimisation Desk said: "Nominations from Belgium are slightly down today adding to the pressure on other supply sources to make up the shortfall such as the medium range facility Holford."

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One LNG tanker is scheduled to arrive at South Hook tomorrow but no other cargoes have been nominated for the UK.

Brent oil is trading at £54.71/bbl (£42.6/bbl).

Mr Morgan added: "Oil prices eased this morning as crude output rose in virtually every major export region despite plans by OPEC and Russia to cut production, triggering fears that a fuel glut that has dogged markets for over two years might last well into 2017."

The pound is valued at €1.18.