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.
Demand levels reached their highest levels in 2017 so far, pushing contracts higher yesterday. This resulted in a rise in European exports into the UK, although healthy Norwegian supply helped to relieve the strain. Further out, a weaker Pound provided support but coal and oil moved down in the afternoon, limiting the gains.
Gas prices moved higher on Friday with a cold weather outlook the main factor behind bullish movement at the front of the curve. UKCS production also decreased and gas demand was expected to be 27% above the seasonal norm today. Further out, contracts were supported by a rise in coal prices with a worker’s strike scheduled in South Africa on the 19th of November.
The gas industry is looking to tackle the current price volatility before it impacts consumers.
A long system and milder weather helped near curve gas prices stabilise yesterday, with almost no change expected to temperatures today. Support was provided by an increase in storage withdrawals, while French nuclear issues continued to impact gas and power contracts. Movement further along the curve was minimal as oil prices stabilised and coal displayed a small drop, offsetting the effects of a weak Pound.