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 decreased on Friday, with the exception of the Day-Ahead contract and some near-curve prices which found direction from weak renewable power availability. Bearish oil weighed on the far-curve, with a rise in coal having little impact, while carbon was stable.
Gas prices displayed mixed movement on Thursday with the front of the curve displaying gains, while contracts further out moved lower. An expected drop in renewable levels today and over the weekend offered support to the prompt, while weaker oil weighed on the far-curve.
Gas prices were extremely volatile yesterday and shifted direction numerous times throughout the session. Gas flows into the UK were stable and strong wind levels reduced the need for gas-fired power. 6 LNG cargoes are also expected to dock in the UK before the end of the month, weighing on the near-curve.
Gas prices sky rocketed yesterday due to concerns regarding French nuclear availability which could result in very high gas demand over the winter months. On top of this, further production cuts are expected at the Groningen field in the Netherlands which will also impact European gas availability. There is also a possibility that Russian flows into Europe could be cut in the near future as Gazprom has lost its 3rd party exemption.
Near-curve gas prices have opened strongly this morning on the back of news that anomalies have been detected within the French nuclear fleet which could affect availability during the winter months.