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.
Maintenance at Norwegian gas facilities reduced imports into the UK and the rest of Europe yesterday which provided support to near-curve contracts. A rise in exports to Belgium via the UK interconnector also increased demand and supported the bulls. Further out, prices were dictated by rising oil contracts and recorded gains.
Volatility on the gas and energy markets has been evident since last Thursdayâ€™s EU referendum, with 52% voting in favour of â€˜leaveâ€™. This has led to the Pound Sterling weakening against other major currencies, resulting a great deal of uncertainty amongst traders. However, the drop in the Pound isnâ€™t the sole reason for this strong market movement.
Gas systems across Europe were balanced yesterday thanks to a rise in imports from Norway, resulting in downward movement across the gas-curve. A drop in oil prices also helped to weigh on far-curve contracts, assisted by a weakening Pound.
Gas prices decreased yesterday afternoon as the UK gas system was balanced throughout the session following a rise in supply. The Pound also weakened further against the Euro which resulted in some losses on Euro-traded contracts, while a drop in Brent pressured down prices on the far-curve.
A drop in the Pound resulted in strong upward movement on the UK gas curve on Friday, although Euro-traded contracts posted losses. Elsewhere, the Dutch Economic Affairs Minister made a preliminary decision to cap production at the Groningen gas facility over the next five years; reducing output from 27bcm to 24bcm.