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 oversupplied throughout Tuesdayâ€™s session despite a halt in Norwegian imports due to planned maintenance. Higher UKCS production and weaker demand helped the system remain long and also led to an increase in exports to Belgium. This healthier supply picture helped near-curve prices record a loss, while a drop in Brent weighed on contracts further along the curve.
Gas contracts moved higher on Friday ahead of planned maintenance work at Norwegian facilities which will limit imports into the UK. A rebound in oil prices also offered additional support further along the curve, while movement on the prompt was limited by a weaker demand forecast over the bank holiday.
Gas contracts initially opened higher yesterday due to a comfortable gas system and a weaker demand forecast for the Bank Holiday weekend. However, prices gradually rose throughout the session due to an increase in Brent, a weakening Pound and a drop in Norwegian flows.
Improved supply levels helped to weigh on near-curve gas prices on Wednesday, with higher Norwegian flows into Europe and an increase in LNG send-outs in the UK, with several deliveries expected before the end of August. Contracts further along the curve remained bearish with falling oil the main market driver.