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 strengthened yesterday due to a cold weather forecast for the second half of January. The UK gas system was oversupplied throughout the session but this did little to limit the gains at the front of the curve as the Pound weakened on the back of comments made by Theresa May in regards to a â€˜hard Brexitâ€™.
Gas prices moved down on Friday on the back of a mild weather forecast for this week and a considerable drop in APi2 coal prices. An unplanned outage at the Rough storage facility helped contracts move higher earlier in the session, while a weak LNG outlook also restricted some of the downward movement.
High residential demand and an unplanned outage in Norway supported gas contracts on the near-curve yesterday morning. However, a decision by the Dutch government not to change production levels at the Groningen facility resulted in losses across the curve in the afternoon; although production levels will be reviewed again next month.
A new outage at the Rough storage facility will reduce withdrawals by 13mcm/ day until the 13th of January; helping towards gains on the gas curve yesterday. Strong upward movement on the coal market provided additional bullish pressure, with a cold weather outlook pushing demand levels higher.
Gas contracts moved down yesterday with a milder weather forecast for this month and an oversupplied system weighing on prices across the near-curve. A drop in oil and coal prices later in the session also helped to weigh on contracts further along the curve. Elsewhere, Russian flows via the OPAL pipeline increased following a decision by the EU commission to raise its capacity, while the Pound also strengthened against the Euro.