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.
Minor upward movement could be observed across the gas curve yesterday despite bearish coal and oil markets. Instead, prices were dictated by a rise in CCGT demand as a result of weak renewable power, with stronger carbon contracts also a bullish factor.
Gas prices climbed higher during yesterday’s session as oil prices displayed a rebound and coal recorded a strong gain. The supply picture was also weaker as maintenance at the Nordstream pipeline restricted flows around Europe. Meanwhile, the Pound weakened against the Euro which provided additional support to the NBP gas market.
Any movement on the gas curve was minor yesterday as the effects of weaker coal were offset by a slight rebound on the oil market. The near-curve was also slightly supported by on-going maintenance at Russia’s Nordstream pipeline which has restricted flows around Europe.
Gas prices were stable at the start of Monday’s session but eased down in the afternoon with direction coming from falling coal and oil markets. Bearish movement was evident across all European markets with the short-term supply/ demand outlook unchanged from the end of last week.
Gas prices climbed higher towards the end of Friday’s session as traders cashed in on their short positions in anticipation of a rebound in oil prices. However, a drop in coal limited the gains on the gas curve. In terms of supply, the system was balanced throughout the session as exports and demand levels increased.