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 contracts ignored weaker demand levels on Tuesday with a stronger Dollar and gains on the oil market dictating the curve. Brent continues to act as the main market driver for gas following comments made by OPEC members in regards to working towards market stability and being open to a potential freeze on oil production.
Near-curve gas contracts decreased on Monday as supply levels improved and helped the system remain long throughout the session, with warmer weather also leading to weaker demand levels. Norwegian imports into the UK via the Langeled pipeline strengthened at the end of last week, while gas stocks are higher than expected. However, bearish movement further along the curve was slightly restricted by rising Brent.
A rising oil market supported contracts on the far gas curve on Friday, with a reported increase in demand fuelling bullish sentiment. Meanwhile, an expected rise in temperatures this week helped to restrict upward movement at the front of the curve, with improved supply levels also contributing to a long system.
Last weekâ€™s statement released by OPEC has fuelled strong bullish movement on the oil market in recent sessions, with crude oil prices displaying their biggest weekly gains since April. OPEC confirmed that talks will be held next month in regards to taking action to stabilise the oil market, with some belief that a freeze on oil output could still materialise, helping Brent climb above $47/b.