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.
Most gas contracts posted losses on Monday as demand levels were weaker on the back of milder temperatures in the UK. Strong wind levels also lessened the UKâ€™s reliance on gas-fired generation, further reducing demand. Meanwhile, LNG send-outs increased with several deliveries set to arrive in the UK over the next few days, leading to an oversupplied system. Further along the curve a stronger Pound offset rising oil prices and the majority of prices stabilised.
Strong gains in the oil market pushed curve contracts higher on Friday, while gas demand increased further due to low wind output, also supporting NBP prices. Forecasts of mild weather weighed on prompt contracts.
Near-curve gas contracts displayed gains yesterday on the back of lower withdrawals from the Rough storage facility and higher exports from the UK to Europe. Further along the curve, the majority of contracts found support from rising oil prices and also posted an increase.
Gas prices moved down during yesterdayâ€™s session due to weaker demand levels and comfortable supply. It was also announced that the Troll gas field would have its production permit increased to 33bcm for the 2016 gas year; providing further downward pressure. Elsewhere, a number of LNG deliveries are expected to dock in the UK this month which contributed to the healthy supply outlook.
A mixture of mild temperatures, healthy supply levels and falling oil prices helped to pressure down contracts across the gas-curve on Monday. Gas demand was 7% lower than Friday, although Russian and Norwegian flows were slightly reduced, however, this was not enough to effect the prompt contract.