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 moved slightly higher by the end of yesterdayâ€™s session as the supply picture was less stable in the afternoon despite weak residential demand. The Euro also strengthened against the Pound which provided bullish pressure further along the curve and offset another drop in oil prices. However, the prompt displayed another loss as mild temperatures are set to continue in the UK.
Gas prices moved down across the curve yesterday as above average temperatures and falling oil were the main market drivers. The UK gas system was long throughout the session and an outage at the Rough facility prevented any storage injections. Demand levels remain very low for this time of year and another drop in Brent weighed on far-curve contracts.
The UK gas system was short for the majority of Fridayâ€™s session which helped to support front-month contracts. An outage at the Rough storage facility reduced storage withdrawals which contributed to the undersupplied system. Brent displayed a significant drop in the afternoon which provided some downward pressure but gas prices displayed another rebound later in the session to close at a premium.
Mild temperatures resulted in weak demand yesterday which helped the prompt shed from its price. Supply levels were generally comfortable and the gas system was balanced throughout the session. However, the Euro strengthened against the Pound later in the day which restricted some of the losses further along the curve.
Despite a bullish opening to the session, gas prices moved down on Wednesday afternoon on the back of positive fundamentals. Mild weather is set to continue over the coming days and supply levels are set to improve despite reduced LNG send-outs.