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 initially opened lower on Wednesday morning but upward movement on the oil market pushed contracts higher in the afternoon. However, the UK gas system was long throughout the session and demand levels were forecast to fall today which helped to weigh on the near-curve.
Falling oil continued to weigh on gas contracts across the curve on Tuesday, although a small rebound occurred in the afternoon. An 8mcm rise in demand levels restricted some of the losses on the near-curve despite a long gas system and a mild weather forecast for later in the week.
Gas prices recorded losses on Monday and were dictated by the falling oil market in the afternoon, as well as the mild weather forecast for later in the week. LNG supply is also expected to remain comfortable over the next couple of weeks and demand levels were 19mcm below the seasonal norm, resulting in an oversupplied system.
1st February 2016 | Posted by: Sarah Cooper | Market Analysis
Weak fundamentals helped gas prices close at a low on Friday after three consecutive bullish sessions. British gas demand dropped on Friday due to milder temperatures, however a drop in storage withdrawals meant that the system remained balanced.
Gas prices displayed further gains yesterday, with rising oil the main market driver as Brent reached a three-week high. Gas demand in the UK was also 6% higher than Wednesdayâ€™s levels and Dutch production fell by 40mcm which tightened the system; a milder weather outlook for next week did little to restrict the upward movement.