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.
Gas prices displayed early morning gains on Monday on the back of high demand and reduced supply which tightened the system. Meanwhile, coal, carbon and power markets rallied higher, providing additional strength to the far-curve. However, most prices displayed a downward correction later in the afternoon.
The UK gas system was 18mcm short yesterday due to strong gas-fired power demand and restricted flows. This helped to lift prices across the near-curve, whereas the far-curve found support from a sharp rise in oil, while carbon continued its bullish trend.
Gas prices moved higher yesterday as Co2 prices hit an eleven year high, with coal and oil also showing an increase. The system was also undersupplied due to a rise in gas-fired power, weaker LNG send-outs and restricted Norwegian flows.
Tuesday saw a generally volatile day of trading with most contracts displaying sharp fluctuations over the course of the session before a late rally. The supply outlook was stable with an outage in Norway impacting flows into the UK, while a weaker Pound offered support further along the curve.