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.
Day-Ahead gas displayed an increase yesterday afternoon following an outage at the Rough storage facility which tightened the UK gas system. However, the overall supply picture remained comfortable which helped the rest of the near-curve display losses. Downward movement further along the curve was slightly restricted by stronger Brent.
The Pound strengthened against the Euro yesterday which helped to weigh on near-curve gas contracts. Fundamentals were generally unchanged with colder weather resulting in high demand, restricting the downward movement somewhat. Elsewhere, Brent stabilised during the session and movement further along the curve was minimal as a result.
Demand levels are expected to increase over the next few days which offered support to the Day-Ahead gas contract yesterday. Sentiment across the rest of the curve was generally mixed with a colder weather forecast for the first half of March dictating some contracts, while a rise in the Pound against the Euro helped to weigh on others; stronger Brent was also a supportive factor on the far-curve.
The DECC has proposed changes to the Capacity Market auction in an attempt to â€œguarantee the nationâ€™s long term energy security, tackle the legacy of underinvestment and deliver an energy infrastructure fit for the 21st century.â€
Temperatures are expected to fall back below the seasonal average over the next few days which offered support to near-curve gas contracts yesterday. The change-over of the front month contract has also helped to lift prompt prices, as did a further decline in the Pound. Movement further along the curve was minimal as oil contracts stabilised during the session.