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 contracts continued to rise on Friday with an expected drop in temperatures this week the main market driver, outages at the Easington terminal and the Skarv gas field also offered further support to the near-curve. Oil prices also displayed a bullish trend for the majority of the session which helped to lift contracts on the far-curve.
Gas prices displayed strong gains on Thursday as fundamentals are expected to weaken in the coming days and the oil market remained bullish. The UK gas system was tighter than expected due to unplanned outages at Norwegian gas fields and scheduled maintenance at the Easington terminal; offering support to the near-curve. An expected drop in temperatures over the weekend and next week also contributed to the bullish sentiment.
Changes on the gas curve reflected the afternoon rise in oil prices, following the release of the EIA report. Prior to this increase in Brent, contracts generally traded flat on the far-curve with little change to long-term fundamentals. Meanwhile, movement on the prompt was bearish with warmer temperatures weighing on demand levels, combined with an improvement in Norwegian flows into the UK.
20th April 2016 | Posted by: Natalie Ivinson | Market Analysis
Gas prices were boosted yesterday, amid a strike by oil workers in Kuwait. Norwegian imports via Langeled dropped as planned maintenance at Easington terminal began. Despite this, the system remained well-supplied with flows from other sources and a fall in demand.