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 contracts shed from their price on Tuesday as the system was long throughout the session due to healthy supply levels. The return of the SEGAL pipeline resulted in higher Norwegian output, with flows through the Langeled pipeline rising to 47mcm. LNG send outs from South Hook also increased and are expected to remain healthy throughout July with two more deliveries expected.
Gas prices displayed losses on Monday as supply levels were comfortable due to improved Norwegian flows and high LNG send-outs, with a number of deliveries scheduled to dock in the UK and France this week. Coal prices also decreased following strong losses last week, providing additional bearish pressure on the far-curve.
Near-curve gas prices moved down on Friday on the back of improved Norwegian flows, as maintenance work was concluded. The system was long throughout the session and the LNG outlook remains healthy with numerous deliveries expected in the UK and France this week. Further out, a falling oil market helped to weigh on contracts, although a weak Pound limited the losses.
Most gas contracts were range-bound yesterday with no major shifts in terms of fundamentals. LNG send-outs are expected to remain healthy throughout July and Norwegian flows will rise today with the return of the Gjoa platform, weighing on the prompt. Meanwhile, rebounds on coal and oil markets offered some support on the far-curve.
Movement along the gas curve was minimal yesterday afternoon as supply levels were comfortable, helping to restrict any upward pressure provided by stronger coal prices. In other news, the first ever US LNG delivery to the UK is expected in the near future, providing some bearish pressure at the start of the session.