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 higher during Monday’s session, recovering from the strong losses seen on Friday. Temperatures are set to turn colder later in the week which will lift demand levels, however, reduced gas-fired power generation limited gains on the near-curve. In terms of supply, Norwegian flows showed a significant increase as scheduled maintenance ended. Meanwhile, further support was provided to contracts on the far-curve by a rebound in coal prices.
Gas prices decreased on Friday ahead of the new gas year and the expiration of numerous contracts. Weaker coal prices also applied bearish pressure to the far-curve, while temperatures during October are forecast to be milder than average, further weighing on contracts.
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.