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 across the board yesterday with support provided by rising oil prices, higher storage injections, unplanned outages and an expected rise in demand. Below average temperatures are forecast for next week which will lead to an increase in residential demand, while US sanctions on Iran has resulted in a bullish oil market.
Following a bullish open, the majority of gas contracts declined over the course of Wednesday’s session, with downward pressure provided by a weaker demand forecast. However, the back of the curve was supported by a strengthening oil market as stock levels in the US continue to increase.
The warm weather ended with the bank holiday weekend and the cooler outlook for this week offered support to near-curve gas contracts in the morning. Flows via the Langeled pipeline improved but the system was slightly short, while a rise in coal and oil provided bullish pressure at the back of the curve.