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.
Changes on the gas curve reflected the afternoon rise in oil prices, following the release of the EIA report. Prior to this increase in Brent, contracts generally traded flat on the far-curve with little change to long-term fundamentals. Meanwhile, movement on the prompt was bearish with warmer temperatures weighing on demand levels, combined with an improvement in Norwegian flows into the UK.
20th April 2016 | Posted by: Natalie Ormrod | Market Analysis
Gas prices were boosted yesterday, amid a strike by oil workers in Kuwait. Norwegian imports via Langeled dropped as planned maintenance at Easington terminal began. Despite this, the system remained well-supplied with flows from other sources and a fall in demand.
Scheduled maintenance at the Easington gas terminal will limit imports into the UK today which helped contracts inch higher on Monday; with further support coming from an expected drop in temperatures later this month. Weaker oil prices helped to weigh on some contracts further along the curve but the overall sentiment on the curve was bullish.
The gas curve displayed very little movement on Friday as traders were reluctant to commit ahead of Sundayâ€™s meeting between OPEC members and Russia in regards to a potential freeze deal for oil. Contracts on the near-curve were slightly supported by a short UK gas system as the outage at the Kollsnes processing facility remained unresolved, reducing Norwegian flows into the UK.
The outage at the Kollsnes processing facility remained unresolved yesterday, limiting Norwegian gas flows into the UK and offering support to the prompt. However, this drop in supply had little effect on the rest of the near-curve which was generally unchanged, while weaker Brent helped to weigh on prices further out.