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.
The government has made a number of proposals to create a new nuclear safeguard plan which would come into action when the UK leaves the EU.
Increases across coal, carbon and oil markets helped to lift gas contracts yesterday afternoon, with Brent in particular rising by over $1/b due to supply issues. The Pound also weakened against the Euro, providing additional bullish pressure, while the supply/ demand picture was almost unchanged from last week.
Contracts at the front of the gas curve were stable-to-bullish on Friday with annual maintenance, low LNG send-outs and higher storage injections impacting supply in the UK. Meanwhile, far-curve gas prices displayed minor losses towards the end of the session as coal and oil markets weakened.
Gas prices initially opened lower but rallied higher as the session progressed to close at a premium. Carbon and coal prices supported contracts at the back of the curve, while the near-curve was dictated by high storage injections, a weak LNG outlook and a lack of wind generation which increased CCGT demand.
Gas prices on the near-curve recorded small gains during yesterday’s session, with weak LNG supply and a rise in storage injections offering support. However, resistance was provided by improved Norwegian flows which resulted in an oversupplied system. Sentiment further along the curve was slightly bearish despite rising coal prices as the oil market stabilised.