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.
A milder weather forecast for this week and the remainder of February helped gas prices close at a discount. Strong imports and high LNG send-outs also kept the system oversupplied, while healthy wind generation reduced CCGT demand.
Gas prices eased down yesterday with expectations of a drop in demand next week. LNG send-outs remained high with more deliveries expected to arrive in the UK as European countries take advantage of cheap Asian prices.
An oversupplied system and a weaker demand forecast for the end of the week resulted in losses along the gas curve on Tuesday, although fuel markets continued to strengthen, limiting some losses on longer dated contracts.
Expectations of cold weather dictated the near gas curve yesterday, with demand levels forecast to climb well above the seasonal norm, while a drop in renewable power also increases reliance on CCGT generation.