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 moved higher on Thursday as cold weather resulted in strong demand, while an unplanned outage saw withdrawals drop to zero at the Rough storage facility; contributing to upward movement on the near-curve. Meanwhile, weaker coal and oil, combined with a stronger Pound helped to cap the gains further out.
A cold weather outlook for the next few days helped to support gas contracts at the start of yesterdayâ€™s session but these gains were restricted by falling oil prices. Gas demand rose to a four-year high in numerous countries across Europe and weakening coal had little impact as a result.
Gas prices moved higher yesterday as the supply outlook has deteriorated with temperatures expected to fall significantly at the end of the week, while LNG supply remains low and stocks have dwindled throughout the winter period. Some support was offered by a stronger Pound following Theresa Mayâ€™s Brexit speech but sentiment across the curve remained bullish.
A milder weather forecast for the rest of this month helped to weigh on near-curve gas contracts yesterday. Additional bearish pressure was provided by healthy Norwegian supply as two unplanned outages were resolved, however, a weaker Pound restricted the losses somewhat.
Two unplanned outages restricted export capacity in Norway on Friday which contributed to a volatile European market but UK gas prices moved down as traders cashed in on profits following strong gains at the start of the week. Further out, contracts were also pressured down by weaker coal and oil markets.