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.
The majority of gas contracts shed from their price on Wednesday as Brent decreased throughout the session following gains on Tuesday. The prompt was one of the exceptions to the downward movement as the UK gas system was short due to a rise in demand and weak Norwegian imports.
The UK gas system was short throughout yesterdayâ€™s session which resulted in downward movement on the near-curve, with a jump in oil prices supporting contracts further out. Demand rose by 14mcm compared to Mondayâ€™s levels following a rise in gas-fired power generation and colder temperatures, while UKCS flows were restricted by maintenance. Some of the gains at the front of the curve were slightly limited by a strengthening Pound.
Gas prices moved down on Monday as weaker oil prices and an improved supply/ demand outlook provided bearish pressure. Norwegian imports displayed a small increase as the return of the Kollsnes facility was offset by an outage at the Gulfaks field. The UK gas system was oversupplied throughout the session as wind generation reduced the need for gas-fired power generation.
Gas prices moved down on Friday as the UK gas system was well-supplied throughout the session and Brent weakened, resulting in bearish sentiment across the curve. The Kollsnes processing facility was also scheduled to return online today, following maintenance which should result in a further improvement in supply levels.
Gas prices moved higher yesterday afternoon following a rise in oil prices, recovering from the morningâ€™s losses. The Pound also weakened further against the Euro which offered additional support to the near-curve. Overall fundamentals were generally unchanged from the previous session with strong exports being offset by healthy LNG send-outs.