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 inched lower yesterday as demand levels fell, supply remained healthy and Brent weakened. The UK gas system was long throughout the session as Norwegian imports increased and LNG send-outs were strong. A further drop in demand was also forecast for today which further weighed on the prompt.
Gas prices initially opened lower on Wednesday morning but upward movement on the oil market pushed contracts higher in the afternoon. However, the UK gas system was long throughout the session and demand levels were forecast to fall today which helped to weigh on the near-curve.
Falling oil continued to weigh on gas contracts across the curve on Tuesday, although a small rebound occurred in the afternoon. An 8mcm rise in demand levels restricted some of the losses on the near-curve despite a long gas system and a mild weather forecast for later in the week.
Gas prices recorded losses on Monday and were dictated by the falling oil market in the afternoon, as well as the mild weather forecast for later in the week. LNG supply is also expected to remain comfortable over the next couple of weeks and demand levels were 19mcm below the seasonal norm, resulting in an oversupplied system.
1st February 2016 | Posted by: Sarah Cooper | Market Analysis
Gas Power Market Close Market Close Weak fundamentals helped gas prices close at a low on Friday after three consecutive bullish sessions. British gas demand dropped on Friday due to milder temperatures, however a drop in storage withdrawals meant that the system remained balanced. Power contracts saw some bearish pressure throughout Friday’s session and over the weekend as a result of ri…