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 UK gas system opened long on Thursday as Norwegian flows ramped up as the outage at Kollsnes was resolved; gas prices moved down across the near-curve as a result. Meanwhile exports via the interconnector were restricted at the start of the session due to planned maintenance, although LNG send-outs were slightly down.
The UK government is to fund research into vehicle-to-grid technology so electric cars can help meet demand during peak times.
Gas prices displayed mixed movement on Wednesday as an unplanned outage reduced Norwegian flows into the UK and tightened the system, offering support to the prompt. However, Norwegian supply was expected to rise today and healthy renewable power will reduce CCGT demand, helping the rest of the near-curve move down. Further out, contracts displayed minor losses on the back of a stronger Pound.
Gas contracts shed from their price on Tuesday as the system was long throughout the session due to healthy supply levels. The return of the SEGAL pipeline resulted in higher Norwegian output, with flows through the Langeled pipeline rising to 47mcm. LNG send outs from South Hook also increased and are expected to remain healthy throughout July with two more deliveries expected.
Gas prices displayed losses on Monday as supply levels were comfortable due to improved Norwegian flows and high LNG send-outs, with a number of deliveries scheduled to dock in the UK and France this week. Coal prices also decreased following strong losses last week, providing additional bearish pressure on the far-curve.