Apollo Energy publishes 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 how the markets are performing and also considers various factors which could dictate price changes in the future.
The analysis also contains a graph which tracks the one-year forward price of both gas and electricity as well as changes to Brent crude oil.
The UK gas system was short yesterday despite low demand levels, resulting in gains across the near curve. Norwegian flows were rerouted away from the UK due to a drop in Dutch output which was the main reason for the undersupply. Meanwhile, oil contracts increased and the Pound weakened against the Euro, providing additional bullish pressure on the far-curve.
Weakening commodity markets and a warm weather outlook for the rest of this week contributed to losses on the gas curve yesterday. Coal and emission contracts decreased but a late rebound in Brent helped to limit some of the downward movement on the far-curve. An outage at the South Hook terminal also reduced UKCS output and offered some support to the prompt.
The National Grid has now announced the three Triad periods for Winter 2016/17.
Gas prices moved down during Friday’s session with bearish pressure provided by a weaker demand outlook and healthy LNG supply. The bigger losses were displayed at the front of the curve due to the milder weather forecast, while stable coal and oil markets limited the decreases on the far-curve.