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.
Near-curve gas prices were pressured down by bearish fundamentals, as systems across Europe are comfortable on the back of weak demand. Mild temperatures continued to weigh on residential demand, with levels 15% below the seasonal norm in the UK. A stronger Pound also helped towards the losses further along the curve.
Gas prices displayed gains across the curve yesterday as a slight drop in temperatures has resulted in a higher demand outlook, with weaker Norwegian flows also a supportive factor. Further out, contracts were largely dictated by increases on the oil market.
The South Hook LNG terminal suffered an unplanned outage yesterday morning and Norwegian flows via the Langeled pipeline also dropped, tightening the UK gas system. However, the outage was quickly resolved and LNG send-outs improved throughout the session, resulting in oversupply and a rise in exports to Belgium. Prices were generally stable with a weakening Pound offering some support but falling coal and oil limited any gains on the far-curve.