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 erased their morning’s gains on Thursday as the demand forecast for the coming days is weak, negating the effects of reduced Norwegian flows. Rising oil offered support at the start of the session but a decrease on coal and carbon markets helped far-curve contracts move down in the afternoon.
Another outage in Norway tightened the UK gas system yesterday and the LNG outlook remains weak due to a rise in Asian prices, resulting in a rise in gas prices on the near-curve. Oil prices also climbed higher in the afternoon which helped to support contracts further out, with a weaker Pound also a factor.
Gas prices moved higher yesterday as renewable power was expected to decrease even further today, leading to a rise in CCGT demand. Warm weather kept residential demand below the seasonal norm and Norwegian outages were resolved, capping the gains somewhat. Further out, any upward movement was restricted by a bearish oil market.
UK energy markets were closed yesterday due to the Bank Holiday weekend but the oil market displayed strong losses, while coal and carbon continued to strengthen. Friday’s session saw contracts across the curve close at a discount, with a healthy supply/ demand outlook the main market driver at the front of the curve.