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 increased on Friday as demand levels rose to their highest point so far this winter. Further support was provided by an expected drop in temperatures later this week, while lower storage withdrawals resulted in a short system. Oil prices also displayed a small increase which supported far-curve contracts.
A milder weather outlook for next week helped to weigh on near-curve gas contracts during Thursday’s session. However, the current cold spell helped to lift the prompt as residential demand rose to its highest level since February. Movement further along the curve was generally bearish as coal and oil markets weakened and the Pound strengthened against the Euro.
Gas prices displayed mixed movement yesterday with a long system weighing on near-curve contracts. An uncertain weather forecast limited some of the losses, while contracts further out followed stronger coal and oil markets. However, the Pound strengthened against the Euro as Brexit negotiations have progressed, capping some of the gains on the far-curve.
Gas prices decreased during Tuesday’s session on the back of an oversupplied system and a slight upward revision in temperatures for next week. Supply levels were healthy and helped the system cope with a rise in demand, while bearish movement on the oil market helped to weigh on the far curve.