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 climbed higher yesterday with Norwegian supply constraints continuing to offer support to contracts at the front of the curve. Maintenance at Kollsnes was initially expected to cut flows by 32.5mcm but this was been revised to 35.5mcm and will last until the 2nd of September. Meanwhile, bullish carbon and oil markets helped far-curve prices to increase.
The National Grid’s Balancing Mechanism (BM) has received its first supply from a 10MW battery storage site. The successful transmission of energy into the BM is expected to provide a major boost to the UK’s renewable and battery storage industry.
Gas prices increased across the curve on Tuesday with direction provided by lower supply and stronger commodities. Ongoing maintenance in Norway limited flows into the UK, contributing to a short system, while bullish oil and carbon markets supported the far-curve.
Gas prices moved down yesterday morning but a rebound on oil & coal markets, in addition to two unplanned outages helped contracts to recover in the afternoon. The system opened long despite planned maintenance and a worker’s strike limiting flows into the UK; this helped to weigh on the near-curve at the start of the session.
Near-curve gas prices were bullish on Friday due to planned maintenance at Norwegian facilities which has limited flows via the Langeled pipeline into the UK. A strike by Total employees was also set to take place today, impacting production levels in the UKCS, while stronger coal offered support to the far-curve.