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 on Friday afternoon as the demand forecast was low and oil and coal markets moved down. Warm temperatures were expected to weigh on residential demand over the weekend and the start of this week. In terms of supply, Norwegian flows were reduced by unplanned outages but exports from the UK to Belgium decreased.
Apollo has been included in the Crown Commercial Service's three-year framework agreement for Energy Management.
The system was tighter yesterday due to unplanned outages which continue to limit Norwegian flows to the UK. The LNG outlook is also weak which resulted in an increase in storage withdrawals. As a result of these supply constraints, prices across the near curve moved higher, while bullish oil prices supported the back of the curve.
Gas prices opened lower on Wednesday but unplanned outages continued to restrict flows into the UK and helped contracts on the near-curve recover as the session progressed. Issues at the North Morecambe, Kvitebjorn and Kristin fields, in addition to reduced output at the Bacton Seal terminal combined to limit supply levels. However, demand levels were below the seasonal norm and fuel markets stabilised, providing resistance to the bulls.
Gas prices displayed mixed movement yesterday with coal and oil markets moving in opposite directions in the afternoon. Following a bullish opening, a warmer weather outlook and an oversupplied system helped towards losses in the afternoon, with a rise in Norwegian flows also a factor.