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.
Two unplanned outages restricted export capacity in Norway on Friday which contributed to a volatile European market but UK gas prices moved down as traders cashed in on profits following strong gains at the start of the week. Further out, contracts were also pressured down by weaker coal and oil markets.
Gas prices moved down yesterday afternoon as traders cashed in on profits following strong gains earlier in the week. However, fundamentals were bullish as a significant drop in temperatures is expected next week which will push residential demand higher. The LNG outlook is also weak, while withdrawals at the Rough storage facility are 10mcm lower due to an ongoing outage.
Despite a mild weather outlook for the next week or so, extremely cold temperatures are set to hit Europe later in the month, leading to a surge in demand. Weaker wind levels will also increase the UK’s reliance on CCGT generation, with rising fuel prices also assisting the bulls during yesterday’s session.
Gas prices inched higher during yesterday’s session as cold weather and a weak Pound combined to support contracts across the curve. Temperatures are set to fall well below the seasonal norm for around two weeks, however, the short term outlook is relatively mild.