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 moved down yesterday afternoon with a drop in carbon weighing on the far-curve. In terms of shorter dated contracts, bearish pressure was provided by warmer weather and improved renewables which weighed on demand.
Far-curve gas prices found support from a rise in coal, oil and carbon markets, while the near-curve moved down amid warmer weather and improved supply. Higher temperatures should reduce demand in the UK but there are fears that the heatwave could impact the cooling of nuclear facilities in Europe.
A warm weather outlook and an expected rise in Norwegian & LNG flows in the coming days helped to pressure down near-curve gas prices on Tuesday. However, weak wind levels led to higher gas-fired power generation, limiting losses on the prompt, while the far-curve displayed little movement.
Gas prices displayed mixed movement yesterday with near-curve contracts shedding from their price and the far-curve trading higher. A sharp rise in carbon offered support to longer dated contracts, while the warm weather outlook weighed on prompt prices.