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 moved down yesterday following an upward revision in temperatures for the middle of next week and the remainder of March. The system was also long throughout the session despite weak storage withdrawals and above average residential demand. Further out, a late rally in oil prices and a rebound on the coal market restricted bearish movement.
The UK grid operator has asked for ‘national policy clarity’ in order to support the industry and promote clean growth. The Future of Gas report highlights how gas could be used to provide low carbon heat, transport and industry if clear policies are outlined. It asks for the government to provide direction so gas can “play a crucial role for many decades to come” by decarbonising infrastructure so it can adhere to the nation’s environmental targets.
Near-curve gas prices decreased on Tuesday but were yet to completely erase the strong gains recorded on Monday. Cold temperatures are expected at the start of next week but milder weather is forecast to return before the month is out. A drop in storage withdrawals has tightened supply but flows in general were healthy. Meanwhile, a drop in oil prices provided additional bearish pressure at the back of the curve.
Gas prices displayed very strong gains at the start of the session but moved down in the afternoon. However, the bearish shift was short-lived as a downward revision in temperatures for next week contributed to another significant rebound. The expected surge in demand has caused concerns regarding a potential gas shortage due to low storage levels. Meanwhile, decreases on oil and coal markets limited some gains at the back of the curve.
Gas prices moved higher on Friday as forecasts for the end of the month point towards more cold weather and storage levels are very low, causing supply fears. Far-curve prices increased later in the session following a rise in oil prices, while the coal market was generally stable.