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.
Movement on the gas curve varied on Wednesday as supply levels weakened in the afternoon and residential demand has increased due to a spell of cooler weather. However, milder temperatures are expected to return over the weekend which limited some of the upward movement. The sentiment further along the curve was generally bearish with oil prices displaying a drop.
Gas prices displayed mixed movement yesterday as most of the near-curve moved higher, while contracts further out were bearish-to-stable. A healthy supply/ demand picture helped towards a long UK gas system which weighed on prompt contracts, while the far-curve was slightly boosted by a small rebound in Brent.
Healthy supply levels and a lower demand forecast helped to weigh on prompt gas contracts yesterday. Gas demand fell by 22mcm and the system was oversupplied throughout the session, with a milder weather outlook and the Easter holidays expected to reduce levels further. The LNG outlook is also comfortable with four deliveries expected to dock in the UK over the next ten days.
A milder weather outlook and improved LNG send-outs led to downward movement across the near gas curve on Friday, with weaker oil weighing on contracts further out. Four LNG deliveries are expected to arrive in the UK before the end of March which pressured down the prompt, helped by a weaker demand forecast for the weekend.