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 moved down on Friday as European temperatures were expected to be above average over the weekend, weighing on demand levels. Supply levels were also healthy in the UK, providing further downward pressure. Further out, contracts were supported by rising coal and oil markets, although a stronger Pound capped some of the gains.
The Tariff Network Code is a regulation which will be implemented on the 1st October 2019 which all EU nations must adhere to.
Gas prices displayed mixed changes yesterday afternoon with some bullish sentiment provided by a drop in Norwegian flows and a recovery on the oil market. An outage at Kollsnes reduced flows into the UK but milder weather continued to weigh on residential demand, helping towards losses across the near-curve in the morning.
Milder temperatures are expected this month and this has weighed on near-curve gas contracts during the previous two sessions as residential demand has decreased. Healthier wind levels also reduced the UK’s reliance on gas-fired generation, helping towards a long system. Further out, prices moved down following a sharp drop in oil prices in the afternoon.
Short-term weather forecasts are rather mild for this time of year and wind generation has improved, resulting in losses on the near-curve yesterday as systems across Europe were oversupplied. Further out, prices were influenced by a weaker coal market, while oil prices stabilised.