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.
Outages in Norway and the UKCS limited imports into the UK yesterday and tightened the system, despite lower demand levels. Rising global markets also offered support to contracts, with Arctic conditions in the US the main market driver.
A decrease in flows to the UK sent the system short during Wednesday’s session despite very low demand. Mild weather and stronger renewable generation reduced both LDZ and CCGT demand, while LNG send-outs remained high. However, additional support was provided an increase in wider commodities due to a rise in US prices.
Unplanned outages at facilities connected to the Langeled and UKCS pipelines reduced flows into the UK yesterday, tightening the system. A healthy LNG outlook helped to offset any bullish sentiment, while rising oil offered some upward pressure further along the curve.
LNG send-outs remained high, with another flurry of deliveries expected before the end of the month. Mild weather also reduced demand and the system was oversupplied, with temperatures expected to hold current levels throughout February – this resulted in losses across the near gas curve.