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 contracts initially opened higher yesterday due to a comfortable gas system and a weaker demand forecast for the Bank Holiday weekend. However, prices gradually rose throughout the session due to an increase in Brent, a weakening Pound and a drop in Norwegian flows.
Improved supply levels helped to weigh on near-curve gas prices on Wednesday, with higher Norwegian flows into Europe and an increase in LNG send-outs in the UK, with several deliveries expected before the end of August. Contracts further along the curve remained bearish with falling oil the main market driver.
Prompt gas contracts were supported by an increase in gas-fired power generation and a rise in exports to Belgium. Maintenance at the Mallnow entry point limited Russian gas flows into Europe which tightened gas systems on the continent, with Norwegian imports also lower than previous sessions. Further along the curve, movement was generally bearish with Mondayâ€™s news in regards to Roughâ€™s withdrawal rate continuing to influence the Winter-16 contract.
Twenty storage wells are to be made available for withdrawals at Centricaâ€™s Rough facility from the 1st of November; easing supply concerns.