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 displayed mixed movement with news of a 1-month outage at a nuclear power plant in France providing support as CCGT generation will be required to make up the shortfall. Meanwhile, contracts at the back of the curve displayed losses with direction coming from falling coal and oil.
Gas prices displayed mixed changes on Wednesday, with the majority of contracts rebounding from a bearish opening. A planned one-day outage at the Dornum terminal limited Norwegian flows to Europe, providing support to the near-curve. Meanwhile, contracts at the back of the curve displayed some losses following downward movement on coal and oil markets.
Near-curve gas prices were generally stable yesterday due to scheduled maintenance at Norway’s Dornum terminal which will limit flows into Europe. The short term supply/ demand picture is rather healthy but there are some concerns in regards to winter storage levels due to Rough’s closure and restrictions at Groningen. Further out, prices were pressured down by falling coal and oil markets.
DCP 228 will come into effect from April 2018, altering the way distribution charges are calculated.
Gas prices were pushed higher by bullish movement on the oil market yesterday, with political tensions between Turkey and Iraq threatening to impact exports from the Kurdistan region. Colder temperatures are also expected to lift demand levels next week, providing further support to prices on the near-curve.