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 on Tuesday morning but the trend reversed in the afternoon as coal, carbon and oil markets turned bearish, while the Pound strengthened against the Euro. The short-term demand forecast is also low due to warm temperatures, weighing on prices at the front of the curve.
Outages continued to restrict supply levels in the UK yesterday, resulting in upward movement across the near-curve. A surge in coal and EUA carbon prices also helped contracts at the back of the curve move higher, although weaker Brent offered some resistance.
Gas prices moved down across the curve on Friday, with a weak demand outlook contributing to losses on the prompt and the rest of the near-curve. A number of LNG deliveries are also expected to dock in Europe in the coming weeks, adding to the bearish sentiment. Meanwhile, the far-curve was pressured down by falling coal, carbon and oil markets.
Gas prices erased their morning’s gains on Thursday as the demand forecast for the coming days is weak, negating the effects of reduced Norwegian flows. Rising oil offered support at the start of the session but a decrease on coal and carbon markets helped far-curve contracts move down in the afternoon.
Another outage in Norway tightened the UK gas system yesterday and the LNG outlook remains weak due to a rise in Asian prices, resulting in a rise in gas prices on the near-curve. Oil prices also climbed higher in the afternoon which helped to support contracts further out, with a weaker Pound also a factor.