Brent Crude prices have risen on the news of non OPEC oil producers (including Russia) reaching agreement to cut output.
- Saudi Arabia has also hinted that it may be prepared to cut output by more than originally agreement. Total pledges to date indicate that cuts could be as much as 2.3 million barrels per day, roughly equivalent to 2% of global production.
Electricity generator Drax announced a conditional agreement to buy Opus Energy. Opus has a growing footprint in the SME market with about 8% of the non-domestic market share.
- The acquisition of Opus will compliment Haven Power, a subsidiary of Drax which operates predominantly in the larger end of the electricity market.
- Drax has also reached agreement to buy four open cycle gas turbines (OCGT) for electricity generation. This will provide a welcome boost to low carbon electricity generating capacity.
Mild weather pushed gas prices down last week as demand for heating reduced and current weather forecasts suggest that temperatures will remain above seasonal norms for the coming week.
There is one further Qatari LNG cargo due into the UK before year end, and gas imports from both Belgium and Norway remain high.
Electricity prices also fell last week on milder temperatures and on the news that seven French nuclear reactors are likely to be returned to service before year end.
The value of the pound fell over 1% against the dollar, halting the pound’s recent rally.
Article by: Richard Clayton