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.
Cold weather continued to support the gas curve yesterday as demand levels were above the seasonal norm. Rising coal prices also offered support to the far-curve in a bullish session. Temperatures are set to remain below average next week and the short-term LNG outlook is weak.
Cold weather offset the effects of improved Norwegian supply yesterday; prices initially opened lower but these losses were erased as the session progressed. Brent and coal also posted further gains which contributed to gains further along the curve.
A colder weather helped near-curve gas contracts to increase, with residential demand sitting 20% above the seasonal norm yesterday. However, milder temperatures are expected later in the week, capping some of the gains. Contracts further along the curve were generally stable as bullish momentum on coal and oil markets eased.
Gas prices were pushed higher on Friday afternoon following a sharp rise in oil prices, assisted by rising coal and a colder weather outlook for this week. However, Norwegian flows improved and the Pound strengthened against the Euro, limiting some of the gains.