Apollo Energy publish a daily energy market analysis, focusing on the gas, power and oil markets, including a commentary on how the markets close and open. Our analysis provides insight on what is currently affecting the market and also considers various factors which could dictate price changes in the future.
The report also contains a graph which tracks the one-year forward price of both gas & electricity as well as changes to Brent crude oil.
The UK gas system was short throughout yesterday’s session which contributed to gains on the near-curve. Colder temperatures resulted in a rise in demand, with weak wind generation also increasing gas usage, while LNG send-outs remained low. Further out, contracts were generally bearish on the back of weakening coal and oil.
The majority of gas contracts moved down on Wednesday despite bullish pressure coming from the power market. A drop in coal helped to weigh on some prices, while an undersupplied gas system, due to a rise in demand continued to offer support. Norwegian imports into the UK were also lower, while the LNG outlook remains weak.
Gas prices increased on Tuesday with support coming from a stronger demand forecast and bullish movement on the power market. A weak LNG outlook helped to push the front-month contract higher, while rising coal continued to support the rest of the far-curve.
Gas prices inched higher on Monday despite weakening Brent and a long UK gas system, with a colder weather outlook and stronger coal the main market drivers. Output at South Hook temporarily dropped to zero in the afternoon due to an outage, with LNG supply expected to remain weak over the next fortnight due to a lack of deliveries.