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.
Gas prices displayed mixed movement during yesterday’s session as contracts on the near-curve found support from weaker Norwegian supply which was caused by unplanned outages. In contrast, far-curve contracts decreased despite a jump in oil prices as traders corrected down from last week’s strong gains.
Gas prices moved higher on Friday on the back of outages in Norway, with planned maintenance at the Kollsnes facility scheduled for today, until the 30th of September; reducing flows by 46mcm. A long UK gas system failed to have much influence on prices as a weaker Pound provided additional support.
Businesses which exceed their daily capacity could incur commercial penalty charges during the winter period.
The UK gas system fell short on Thursday following a significant drop in Norwegian flows due to an outage at the Vesterled pipeline, this resulted in bullish movement across the near gas curve. Further out, the rising oil market continued to act as the main market driver and most contracts moved higher.
UK supply levels fell by 10mcm yesterday, while demand also increased, tightening the system and resulting in bullish movement on the curve. Exports to Belgium were also high and an outage at a Norwegian facility was extended by a day. Meanwhile, a bullish oil market provided upward pressure on the far-curve.