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 fluctuated on Monday; initially opening at a premium, falling in the afternoon and then rebounding before the end of the session due to a rise in oil. The cooler weather forecast for this week supported near-curve prices in the morning but comfortable supply levels helped to erase some of these gains as the session progressed. Improved Norwegian flows helped towards a long UK gas system, while the short-term LNG outlook also remains healthy.
The French President has announced closures at nuclear reactors from 2018, as well as a commitment to a minimum price for carbon emission allowances, resulting in strong upward movement on the power market.
Gas contracts continued to rise on Friday with an expected drop in temperatures this week the main market driver, outages at the Easington terminal and the Skarv gas field also offered further support to the near-curve. Oil prices also displayed a bullish trend for the majority of the session which helped to lift contracts on the far-curve.
Gas prices displayed strong gains on Thursday as fundamentals are expected to weaken in the coming days and the oil market remained bullish. The UK gas system was tighter than expected due to unplanned outages at Norwegian gas fields and scheduled maintenance at the Easington terminal; offering support to the near-curve. An expected drop in temperatures over the weekend and next week also contributed to the bullish sentiment.