Gas contracts firmer despite oversupplied system – DMR
Gas contracts are trading firmer than last night’s close despite the system being oversupplied.
It is expected to close 9mcm long, according to npower’s daily market report.
That’s because demand is still below seasonal normal levels and flows into the UK from Langeled are high at 54mcm.
However LNG send-out is still lacking at 5mcm and no tankers are scheduled to arrive in the UK.
Power contracts are also trading firmer.
The peak margin is at 12.8GW with CCGT providing 19.5GW of the power mix and nuclear above 7GW.
Wind is generating 3.7GW and is expected to reach around 4.8GW later today.
Amardeep Ubhi from the Optimisation Desk said: “The French interconnector isn’t currently flowing into the UK but is forecast to flow at a high of 500MW during the day. The Dutch interconnector is flowing at full capacity.”
Brent oil is trading at $51.42/bbl ($40.10/bbl).
Mr Ubhi added: “Oil hit June highs yesterday after US crude inventories fell three million barrels but despite this, stocks were still close to all-time highs. Prices have dipped this morning though after Saudi Arabia trimmed the price of its flagship physical crude to Asia for November in a sign that the global fuel glut persists.”
The pound is valued at €1.136.