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.
The UK gas system was short for the majority of Fridayâ€™s session which helped to support front-month contracts. An outage at the Rough storage facility reduced storage withdrawals which contributed to the undersupplied system. Brent displayed a significant drop in the afternoon which provided some downward pressure but gas prices displayed another rebound later in the session to close at a premium.
Mild temperatures resulted in weak demand yesterday which helped the prompt shed from its price. Supply levels were generally comfortable and the gas system was balanced throughout the session. However, the Euro strengthened against the Pound later in the day which restricted some of the losses further along the curve.
Despite a bullish opening to the session, gas prices moved down on Wednesday afternoon on the back of positive fundamentals. Mild weather is set to continue over the coming days and supply levels are set to improve despite reduced LNG send-outs.
The majority of gas prices moved higher yesterday despite a healthy supply picture at the start of the session. Norwegian flows increased significantly and Dutch imports also rose which resulted in a long UK gas system. However, an outage led to a decrease in flows via the Langeled pipeline in the afternoon which helped the prompt climb higher. Fewer LNG deliveries into the UK also reduced send-outs, providing further upward pressure.
The UK gas system was short for the majority of yesterdayâ€™s session and LNG output is also set to decrease over the next few weeks which offered support to gas prices. Storage withdrawals ramped up in an attempt to balance the system, offsetting the drop in Dutch output. Meanwhile, Brent rallied higher and contributed to bullish movement further along the curve.