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.
Movement along the gas curve was mixed yesterday with colder weather and weak wind generation lifting demand levels which resulted in gains at the front of the curve. Meanwhile, some losses were recorded at the back of the curve following a sharp decrease in EUA prices, ahead of fears that the UK could leave the EU ETS.
Gas prices moved higher on Friday as temperatures for this week were revised down and an increase in storage injections is expected, tightening the system. Residential demand was forecast to rise by over 30mcm today but improved LNG flows should help to make up the difference. Further out, prices continued to take direction from rising commodity markets.
Gas prices decreased on Thursday as a result of weaker demand levels and improved LNG send-outs. Demand was pushed down by a rise in wind power, while LNG send-outs at the Dutch Gate terminal reached a 6-month high. Meanwhile, falling commodity markets continued to weigh on the back of the curve.
A drop in demand thanks to healthy renewable power levels and warm weather resulted in losses on the near-curve yesterday. LNG send-outs also increased, rising to 144mm cm, compared to the September average of 85 mm cm, with a number of deliveries expected to dock in Europe this month.