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.
Another revision in weather forecasts has pointed to a drop in temperatures next week, providing support on the near gas curve yesterday. Maintenance at a Norwegian gas field also contributed to gains, with a rebound in coal helping towards upward movement further out. However, gains on the prompt were limited by healthy wind output and below average demand.
Near-curve gas prices moved down on Friday with a mild weather outlook for the weekend and a slightly long system helping towards the losses. A recovery in the Pound helped towards downward movement at the back of the curve as oil and coal markets were stable.
The UK gas system remained long throughout Thursday’s session as milder temperatures reduced residential demand and a rise in wind levels resulted in lower CCGT demand. This helped contracts move down as the session progressed, with little support provided by coal and oil markets.
A milder weather outlook for the rest of the month and a sharp drop in oil prices helped gas contracts move down across the curve on Wednesday. The system remained oversupplied despite maintenance at a Norwegian gas field, while weaker coal also contributed to losses. In other news, production cuts in Holland were delayed for 12 months, providing additional bearish pressure.