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 increased on Monday as the system was undersupplied throughout the session and further support was provided by a rise in Brent. Demand levels were 14mcm above average for this time of year and the system started the session 9mcm short. On the far-curve, prices were dictated by rising oil on the back of a lower rig count in the US.
The UK gas system opened long on Thursday as Norwegian flows ramped up as the outage at Kollsnes was resolved; gas prices moved down across the near-curve as a result. Meanwhile exports via the interconnector were restricted at the start of the session due to planned maintenance, although LNG send-outs were slightly down.
The UK government is to fund research into vehicle-to-grid technology so electric cars can help meet demand during peak times.
Gas prices displayed mixed movement on Wednesday as an unplanned outage reduced Norwegian flows into the UK and tightened the system, offering support to the prompt. However, Norwegian supply was expected to rise today and healthy renewable power will reduce CCGT demand, helping the rest of the near-curve move down. Further out, contracts displayed minor losses on the back of a stronger Pound.