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 recorded losses yesterday afternoon, wiping out some of Fridayâ€™s gains with weaker demand and falling oil the main market drivers. Gas demand in the UK fell by 20% compared to Fridayâ€™s levels as a result of milder weather and improved renewable generation. The UK gas system was oversupplied throughout the session despite a 20mcm drop in Langeled flows.
Gas prices were on the rise on Friday, despite weaker demand levels with direction coming from a stronger oil market. Temperatures are expected to rise to above average levels for the rest of the month, while stronger wind output should also reduce the nationâ€™s reliance of gas-fired power generation.
Gas prices decreased on Thursday as temperatures are set to turn milder over the next fortnight. However, an unplanned outage at a Dutch storage facility impacted BBL flows which limited the losses somewhat. Meanwhile a sharp rise in oil prices offered some support to far-curve contracts later in the session.
Gas prices weakened on Wednesday despite a sharp rise in demand levels as milder temperatures are expected to return to the UK before the weekend. An increase in wind levels will also reduce the nationâ€™s reliance of gas-fired generation, lowering demand further. The falling oil market also applied downward pressure on contracts on the far-curve.
Near-curve gas prices were pushed higher yesterday by high demand levels and a drop in Norwegian supply. The rest of the curve displayed mixed movement with a weak oil market offset by a rise in the Euro against the Pound.