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 decreased yesterday despite a short gas system as the near-curve was influenced by an expected improvement in Norwegian imports today as maintenance was set to be concluded. Demand was 25mcm lower than Monday's levels which helped to weigh on the prompt further, while weakening Brent pressured down far-curve contracts.
Near-curve gas prices increased yesterday as a drop in Norwegian supply due to maintenance resulted in a short UK gas system; Day-Ahead rose by 1.35ppt, Front-Month by 0.40ppt and Front-Quarter by 0.20ppt. However, some losses were displayed further along the curve as the Pound strengthened against the Euro once again and Brent decreased.
Near-curve gas prices moved higher on Friday as unplanned maintenance is set to reduce Norwegian imports into the UK by 30mcm today, sending the system into undersupply. Meanwhile the Pound continued to strengthen against the Euro which restricted some of the gains and resulted in a few losses further along the curve.
Gas prices increased by the end of yesterday's session as unscheduled maintenance took place at a gas field in Norway which reduced flows into the UK. It was also announced that withdrawals from the Bergermeer storage facility will be cut by 50% starting from today. Meanwhile, gas demand rose to 267mcm, 63mcm above the seasonal norm, however, strong LNG supply and a milder weather forecast helped to limit the gains.
Healthy supply levels and a stronger Pound helped to pressure down gas prices yesterday. Numerous LNG deliveries are expected to arrive in the UK this month which resulted in high send-outs. Norwegian supply was also comfortable despite the outage at the Heimdal platform and countered a slight rise in demand levels.