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 prices continued on a bearish trend on Monday as a mild weather/ weak demand outlook and falling oil prices weighed on contracts across the curve. Meanwhile, the gas system was short throughout the session due to an outage at the Rough storage facility and a rise in gas-fired power generation, however, this did little to lift prices.
Gas prices decreased on Friday on the back of a mild weather forecast for the rest of December, with further bearish pressure coming from falling oil prices. The UK gas system was short due to a number of outages in Norway but this did little to curb the losses.
An above average weather forecast and improved Norwegian supply helped to weigh on near-curve gas contracts yesterday. Prices further along the curve were largely dictated by falling oil prices which hit a 7-year low in the afternoon. UK temperatures are expected to be around 10Â° for the rest of the month, around 5Â° higher than the seasonal norm, resulting in lower residential demand.
Gas prices moved down yesterday as healthy supply and below average demand levels dictated the market. UKCS flows were lower and residential demand displayed a small increase due to a slight drop in temperatures but the system was long on the back of strong Norwegian flows and a decrease in exports to Belgium.
Gas prices moved slightly higher by the end of yesterdayâ€™s session as the supply picture was less stable in the afternoon despite weak residential demand. The Euro also strengthened against the Pound which provided bullish pressure further along the curve and offset another drop in oil prices. However, the prompt displayed another loss as mild temperatures are set to continue in the UK.