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 UK gas system was short yesterday due to the outage at the Kollsnes processing plant in Norway. However, gas prices largely ignored this drop in supply and significant losses were posted across the curve due to falling oil and a weak demand forecast. The outage in Norway was also expected to be resolved today which limited its impact.
The water services regulation authority, Ofwat has submitted proposals, dubbed Water 2020 which would allow new firms to enter the water market. It is thought that by removing restrictions on new firms competing for water contracts, customers could save up to Â£1bn by 2020.
Gas prices displayed mixed movement during Tuesdayâ€™s session as a slight rise in oil prices supported contracts on the far-curve, while the mild weather outlook weighed on the near-curve. Overall supply levels were comfortable as an increase in wind production led to a reduction in gas-fired power generation.
Gas prices continued on a bearish trend on Monday as a mild weather/ weak demand outlook and falling oil prices weighed on contracts across the curve. Meanwhile, the gas system was short throughout the session due to an outage at the Rough storage facility and a rise in gas-fired power generation, however, this did little to lift prices.
Gas prices decreased on Friday on the back of a mild weather forecast for the rest of December, with further bearish pressure coming from falling oil prices. The UK gas system was short due to a number of outages in Norway but this did little to curb the losses.