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.
Near-curve gas contracts moved higher on Thursday as maintenance at a major Norwegian gas field is to be extended which will result in short supply. This on-going maintenance will reduce Norwegian flows by 26.5mcm from the 20th of June for seven days. Movement further along the curve varied with weaker oil prices weighing on some contracts.
Sources claim that production at the Groningen gas field in Holland may be reduced further, potentially impacting supply levels across Europe.
Gas prices displayed mixed movement on Wednesday as a rise in Norwegian imports, following the end of maintenance helped to weigh on near-curve contracts. The improved supply picture erased some of the gains recorded in the previous session on the back of another proposed cap at the Groningen gas field. Meanwhile, a late rise in oil prices offered support to contracts on the far-curve.
Prompt gas prices climbed higher yesterday afternoon on the back of maintenance at the Gullfaks gas field in Norway which will start today. Upward movement was slightly restricted on the near-curve as an LNG delivery is expected to arrive at the Isle of Grain today. Meanwhile, weaker oil prices helped to weigh on some contracts further along the curve.
Norwegian flows are back to normal levels this week which led to balanced gas systems across Europe on Monday; resulting in losses across the near-curve. Meanwhile, oil prices continue to weaken, helping to pressure down contracts further along the curve.