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.
Unplanned outages at Norwegian facilities resulted in bullish movement on the near gas curve yesterday afternoon; maintenance at the Skarv field has reduced export capacity in Norway by 10mcm. Further out, contracts found support from a jump in oil prices as it was announced that major oil producers have agreed to production cuts.
OPEC members have agreed to a preliminary deal to cut output for the first time in eight years which has resulted in increased oil prices.
A combination of improved Norwegian flows, a weaker demand outlook and a drop in oil prices resulted in bearish movement across the gas curve on Tuesday afternoon. However, the UK gas system was short due to an unexpected outage at the St Fergus terminal, despite reduced gas-fired generation. Elsewhere, Shell have announced that a further two compressors will be installed at the Ormen Lange gas field next year which will increase capacity by 20mcm.
Gas prices displayed mixed movement during yesterday's session as contracts on the near-curve found support from weaker Norwegian supply which was caused by unplanned outages. In contrast, far-curve contracts decreased despite a jump in oil prices as traders corrected down from last week;s strong gains.
Gas prices moved higher on Friday on the back of outages in Norway, with planned maintenance at the Kollsnes facility scheduled for today, until the 30th of September; reducing flows by 46mcm. A long UK gas system failed to have much influence on prices as a weaker Pound provided additional support.