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.
Reduced flows via the IUK pipeline limited losses at the front of the curve yesterday but the sentiment remained bearish as mild weather was expected to continue today. Further out, the majority of contracts moved down, with direction coming from weakening coal and oil markets. However, the Euro rebounded against the Pound slightly which offered support to some contracts.
The front of the gas curve moved down yesterday with losses on the power market a contributing factor. Improved power generation and a rise in temperatures was also expected to reduce gas demand today, further weighing on the prompt.
A milder weather forecast for today and an improved power supply outlook helped to pressure down gas contracts yesterday. Outages in Norway continued to restrict exports to Europe but this failed to provide much support to the curve. Further out, contracts were pressured down by weaker power and coal, while oil was stable.
A milder weather forecast for this week helped to pressure down near curve gas contracts on Friday as demand levels are set to fall. Withdrawals are also set to restart at the Rough storage facility on Friday, with a drop in coal and power prices also helping towards the losses.