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 down on Friday due to a weak demand forecast, as mild temperatures and healthy wind levels were expected this week which will pressure down both LDZ and CCGT demand. Further out, stable coal and carbon markets offered resistance but overall movement remained bearish.
Gas prices moved higher yesterday, taking direction from bullish commodity markets, with carbon in particular displaying strong upward movement. Meanwhile, supply levels tightened due to a drop in flows which offered additional support to the front of the curve.
Gas prices were pressured down on the near-curve by a long system, with stronger wind levels weighing on CCGT demand. Temperatures are expected to return to the seasonal norm next week, which offered some resistance, while weaker commodities weighed on the far-curve.
Two unplanned outages resulted in a drop in UKCS production yesterday, while Norwegian flows also weakened, contributing to a short system despite lower CCGT demand. An expected drop in temperatures next month also limited any downward movement, while a rise in coal and oil markets helped to lift the far-curve.
Gas prices moved down during yesterday’s session thanks to an oversupplied system, with the more significant losses seen on the prompt and winter contracts. Contracts further along the curve also decreased, although a rebound on fuel markets offered resistance.