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.
A drop in Norwegian imports into the UK helped to support gas contracts yesterday afternoon, ignoring an oversupplied system. Temperatures were also set to turn cooler later in the week which will lift demand levels, while weaker wind should lead to a rise in gas-fired power generation.
Gas prices decreased yesterday as supply levels improved following the end of maintenance at Norwegian facilities; this led to an 11% rise in exports to the continent compared to the end of last week. The UK gas system opened 50mcm long following this rise in supply, further helped by low demand and improved domestic production.
Crude oil prices display a sizeable loss this morning as oil drillers in the US continue to add more rigs, resulting in high levels of production.
Gas contracts moved down on Friday on the back of an improved supply outlook, as outages at Norwegian and Russian facilities were resolved. The UK gas system was well-supplied throughout the session which pressured down the prompt, with the losses filtering through to the rest of the near-curve. Meanwhile, falling Brent erased some of the morningâ€™s gains on the far-curve.
Day-Ahead gas decreased during yesterdayâ€™s session due to a heavily oversupplied system following a rise in Norwegian flows via the Langeled pipeline and higher UKCS production. Meanwhile, stronger wind power resulted in a decrease in gas-fired generation, reducing demand. Losses were evident across the near-curve but contracts further out found support from an increase in Brent.