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 climbed higher yesterday following two unplanned outages in Norway, with further upward pressure coming from strong consumption levels. The outages in Norway are expected to take up to two days to resolve but a milder weather forecast should reduce demand levels, restricting the gains on some contracts.
Gas prices moved down towards the end of Friday’s session after displaying strong gains in the morning. Prices initially moved higher due to a strong demand forecast for the weekend on the back of colder temperatures. However, the system was oversupplied thanks to stable BBL flows and a rise in Norwegian imports, while LNG send-outs also remained healthy.
Gas prices displayed strong gains during Thursday’s session as temperatures are set to drop over the weekend, which will lead to a significant rise in demand. Production cuts at Holland’s largest gas facility also returned as a market driver later in the session.
Gas prices recorded strong gains in the morning following the announcement of production cuts at the Groningen facility in Holland for start of the 2015-2016 gas year. However, the Dutch Council of State will allow output to continue at 33bcm until then in case of strong demand over the winter period; resulting in significant downward movement across the curve.
The gas curve displayed further gains yesterday as a colder weather forecast and uncertainty regarding production cuts at the Dutch Groningen facility were the main market drivers. UK residential demand remained significantly below average but a halt in Norwegian imports offered support to the prompt.