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 increased by the end of yesterday's session as unscheduled maintenance took place at a gas field in Norway which reduced flows into the UK. It was also announced that withdrawals from the Bergermeer storage facility will be cut by 50% starting from today. Meanwhile, gas demand rose to 267mcm, 63mcm above the seasonal norm, however, strong LNG supply and a milder weather forecast helped to limit the gains.
Healthy supply levels and a stronger Pound helped to pressure down gas prices yesterday. Numerous LNG deliveries are expected to arrive in the UK this month which resulted in high send-outs. Norwegian supply was also comfortable despite the outage at the Heimdal platform and countered a slight rise in demand levels.
Gas prices decreased on Tuesday as healthy supply levels outweighed a rise in demand which was caused by colder weather. Residential demand increased by 10% compared to Monday's levels, while exports to Belgium were also higher. After initially opening short, the system became balanced in the afternoon as LNG send-outs and storage withdrawals strengthened; this helped the prompt shed from its price.
Spot power prices increased on Friday but display losses this morning, however, the overall outlook is bullish with colder temperatures pushing demand levels higher, while renewable generation also remains low.