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.
UK energy markets were closed yesterday due to the Bank Holiday weekend but the oil market displayed strong losses, while coal and carbon continued to strengthen. Friday’s session saw contracts across the curve close at a discount, with a healthy supply/ demand outlook the main market driver at the front of the curve.
Prompt gas prices decreased on Thursday following a bullish opening, with Norwegian flows expected to improve today and demand levels set to remain below the seasonal norm. Prices further along the curve also moved down with direction coming from weaker Brent.
Near-curve gas prices were dictated by unplanned outages yesterday and recorded strong gains despite below average demand levels. Support was also provided by rising fuel costs, with carbon and coal displaying significant upward movement and Brent recovering from losses incurred in the previous session.
Outages in the UKCS and Norway continued to restrict supply levels and provided support to prices at the front of the gas curve yesterday afternoon. The return of the North Morecambe gas field was postponed for another 4 days, while St Fergus was pushed back to tomorrow. Weak demand levels limited the gains, while a rise in EUA carbon prices helped towards increases at the back of the curve.