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 prompt market saw contracts weaken yesterday following an increase in supply levels while nuclear production has also improved. The UK gas system tightened yesterday following higher demand, weaker UK production due to a drop in BBL flows and a series of outages at facilities.
On the spot marker the cooler weather forecast has been offset by a rise in wind generation which should help contracts stabilise. On the UK gas market supply levels have improved this morning thanks to higher flows from the Theddlethorpe facility which should see October 2013 prices move down.
Spot prices went up yesterday due to a low wind forecast although supply levels are expected to improve slightly. In terms of gas, demand is still rather low and supply levels are increasing which should see a drop in October-13 prices.
The spot market turned bullish yesterday due to the forecast of a significant drop in wind generation. The UK gas market saw an improvement in supply as well as a decrease in demand, although the downward movement could be limited by fluctuating BBL flows.