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.
Maintenance in Norway continued to restrict flows in to the UK but above average temperatures and strong LNG supply resulted in a long gas system, contributing to losses across the near-curve. However, the downward movement was restricted by a halt in BBL flows and an increase in gas-fired power generation, while stronger oil and coal supported the far-curve.
Gas prices displayed downward movement yesterday as the UK gas system was 5mcm long despite scheduled maintenance restricting flows via the St Fergus terminal, reducing output by 19mcm. A drop in residential demand contributed to Tuesdayâ€™s oversupply, as did an increase in LNG send-outs. Meanwhile, weaker oil and coal prices applied bearish pressure further along the curve.
3rd November 2015 | Posted by: James Turner | Market Analysis
Although the temperatures dropped yesterday, the rest of the week is forecast to get warmer. It is this mild weather forecast along with strong supply that has pushed gas prices down again. A falling oil price has added bearish pressure also.
2nd November 2015 | Market Analysis
Gas prices dropped to a seasonal low on Friday on the back of warm temperatures and news of multiple LNG deliveries over the coming week. Demand remained low on Friday, especially residential demand which was 26mcm below seasonal norms, adding further bearish pressure to NBP spot prices which closed at their lowest mark since August.
Gas prices decreased on Thursday as overall fundamentals were healthy and the Pound continued to strengthen against the Euro. Maintenance in Norway had a lesser effect on UK supply than initially expected and the gas system was only slightly short. Meanwhile, a mild weather forecast for next week provided additional bearish pressure on the near-curve.