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 yesterday afternoon as traders cashed in on profits following strong gains earlier in the week. However, fundamentals were bullish as a significant drop in temperatures is expected next week which will push residential demand higher. The LNG outlook is also weak, while withdrawals at the Rough storage facility are 10mcm lower due to an ongoing outage.
Despite a mild weather outlook for the next week or so, extremely cold temperatures are set to hit Europe later in the month, leading to a surge in demand. Weaker wind levels will also increase the UKâ€™s reliance on CCGT generation, with rising fuel prices also assisting the bulls during yesterdayâ€™s session.
Gas prices inched higher during yesterdayâ€™s session as cold weather and a weak Pound combined to support contracts across the curve. Temperatures are set to fall well below the seasonal norm for around two weeks, however, the short term outlook is relatively mild.
Gas prices strengthened yesterday due to a cold weather forecast for the second half of January. The UK gas system was oversupplied throughout the session but this did little to limit the gains at the front of the curve as the Pound weakened on the back of comments made by Theresa May in regards to a â€˜hard Brexitâ€™.
Gas prices moved down on Friday on the back of a mild weather forecast for this week and a considerable drop in APi2 coal prices. An unplanned outage at the Rough storage facility helped contracts move higher earlier in the session, while a weak LNG outlook also restricted some of the downward movement.