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.
The National Grid has proposed a new project which will see the development of a second power interconnector between the United Kingdom and France. The high voltage direct current (HVDC) interconnector, known as IFA2 would be installed between Hampshire and Normandy and would also include an electricity converter station at Daedalus airfield.
Gas prices moved higher on Monday as a colder weather forecast and unplanned outages offered support. Supply levels decreased as the Troll gas field, the North Morecambe field and the Bacton entry point suffered outages which reduced Norwegian and UKCS flows, resulting in a short system.
Gas prices moved down during Fridayâ€™s session as residential demand was below average and supply levels were healthy. The oversupplied system helped near-curve contracts to decrease, with two LNG deliveries scheduled to arrive at South Hook further assisting the bears. Further along the curve, contracts shed from their price on the back of weakening Brent.
Day-Ahead gas displayed a rise towards the end of yesterdayâ€™s session as the system fell short following a decline in Norwegian supply. A colder weather forecast for today and the weekend also provided support, with a rise in demand levels expected. However, falling Brent and the return of milder weather next week helped contracts move down further along the curve.
Gas prices continued on a downward trend yesterday as supply levels were strong, residential demand remained below the seasonal average and oil displayed another loss. The UK gas system was oversupplied as a result of this healthy supply/ demand picture, with LNG send-outs rising to 50mcm.