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 contracts posted losses on Tuesday as the UK gas system was oversupplied throughout the session, however, rising oil prices limited downward movement on the far-curve. Norwegian flows via the Langeled pipeline increased as a number of outages were resolved, although capacity at the Nyhamna processing plant is still restricted. LNG send-outs also ramped up which further weighed on prompt contracts with the help of an upward revision in temperatures for next week.
Gas prices initially opened higher on Monday morning but a drop in oil prices helped contracts close at a discount. Unplanned outages at Norwegian facilities limited flows into the UK but warm weather reduced demand levels; helping the UK gas system remain close to balance. The morning's bullish movement was largely a result of a cooler weather forecast for the weekend and next week, with supply constraints also offering support.
Prompt gas prices moved higher on Friday afternoon as Norwegian supply levels decreased, with weaker demand levels doing little to restrict the gains. Norwegian imports via the Langeled pipeline fell to 12mcm, while flows at the St Fergus terminal halted, resulting in a short gas system. Further along the curve the majority of contracts moved down as oil prices decreased.
Rising Brent supported contracts further along the curve yesterday, although a comfortable supply/ demand outlook for the coming week helped to limit upward movement on prompt prices. Outages at Norwegian facilities limited imports into the UK which fuelled the bullish sentiment but the changes were minimal after strong gains in the morning.
Gas contracts recorded losses at the start of Wednesdayâ€™s session on the back of a warm weather outlook and comfortable supply. However, a surge in oil prices in the afternoon resulted in strong gains across the curve, erasing the morningâ€™s losses and ignoring a comfortable supply outlook.