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.
Near-curve gas contracts displayed gains yesterday on the back of lower withdrawals from the Rough storage facility and higher exports from the UK to Europe. Further along the curve, the majority of contracts found support from rising oil prices and also posted an increase.
Gas prices moved down during yesterdayâ€™s session due to weaker demand levels and comfortable supply. It was also announced that the Troll gas field would have its production permit increased to 33bcm for the 2016 gas year; providing further downward pressure. Elsewhere, a number of LNG deliveries are expected to dock in the UK this month which contributed to the healthy supply outlook.
A mixture of mild temperatures, healthy supply levels and falling oil prices helped to pressure down contracts across the gas-curve on Monday. Gas demand was 7% lower than Friday, although Russian and Norwegian flows were slightly reduced, however, this was not enough to effect the prompt contract.
Gas contracts were on the decline on Friday due to a healthy supply/ demand outlook and falling oil prices. Mild temperatures were expected for the start of April, reducing demand levels across Europe, while Russian and Norwegian flows into the continent remained strong. However, some of the losses on the near-curve were restricted by a drop in the Pound against the Euro.
Gas contracts moved higher on Thursday as temperatures remained cold, resulting in a tighter gas system, although mild temperatures are expected over the weekend. Near-curve contracts also received support from a weaker Pound and gas-fired power generation is set to rise due to weak renewables.