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.
Coal and oil recorded strong losses yesterday which heavily weighed on the gas curve. A potential oil glut led to a significant decrease in the price of Brent crude, while further bearish pressure was provided by weaker carbon and power contracts. A short system had little bearing on the curve as the overall supply picture is healthy.
Most gas contracts shed from their price yesterday afternoon as Brent corrected down and coal stabilised. The system was long throughout the session as a rise in temperatures reduced heating demand and overall flows were comfortable.
Gas prices moved down across the curve on Tuesday despite cold temperatures continuing to lift heating demand. Temperatures are expected to rise to around the seasonal norm towards the end of the week, limiting any impact on prices. Meanwhile, LNG supply remained strong and coal & oil markets decreased, adding to the bearish sentiment.
Gas prices increased yesterday afternoon despite a bearish opening, as colder than expected weather resulted in a rise in demand. Traders also bought back into their short positions ahead of the November expiry, offering further support to contracts.
Gas prices moved down across the curve on Friday with weaker commodity markets providing bearish pressure. Coal, power and carbon all decreased, while a healthy supply picture weighed on the front of the curve despite a colder and less windy forecast for the weekend.