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.
Temperatures are expected to fall well below the seasonal norm towards the end of the week which has provided support this morning. The prompt is one of the exceptions to the morningâ€™s upward movement though as the gas system has opened long. The British Pound has also strengthened against the Euro which restricted the gains on the far-curve.
Gas prices moved higher yesterday afternoon despite the UK gas system opening around 25mcm long which led to losses at the start of the session. However, prices took direction from the expected drop in temperatures over the weekend and next week. A rebound in oil prices and a stronger Euro also ensured upward movement further along the curve.
The UK gas system is 27mcm long this morning and above-average temperatures are expected to return later in the month, helping to weigh on gas contracts across the near-curve. Another strong drop in Brent has also weighed on contracts further along the curve in a bearish opening to the session.
Gas prices moved higher yesterday morning on the back of a colder weather forecast for next week which will lead to a rise in demand. However, a fall in oil prices provided downward pressure on the curve, erasing the sessionâ€™s early gains. The British Pound also strengthened against the Euro which weighed on contracts further.
The UK government has implemented a number of schemes to encourage businesses to reduce carbon emissions as part of the nation's climate change commitment. These schemes would see additional costs added to a company's energy bill unless action is taken to reduce its carbon footprint.