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 posted gains towards the end of Friday’s session with cold temperatures contributing to above average demand levels. A drop in storage injections also provided additional strength to the Day-Ahead contract. Meanwhile, oil prices were rather volatile and helped to support contracts on the far-curve.
A new report from Energy UK, the trade association for the UK energy industry states that the nation’s framework needs a reform to ensure systems are; simplified, made more efficient and reflective of the generation mix.
Gas prices closed at a discount despite a bullish opening, with downward movement on the oil market weighing on contracts in the afternoon. Gas demand was well above the seasonal norm which resulted in an undersupplied system and temperatures are not expected to improve drastically next week. Meanwhile, coal prices rallied higher which limited some of the losses on the far-curve.
Temperatures across Europe were below average yesterday, resulting in tight gas systems and contributing to gains on the near-curve. Coal prices also rebounded strongly, while Brent was relatively stable, restricting losses at the back of the curve. UK demand was 37% above the seasonal norm and the system was short despite an increase in Langeled flows and stronger LNG send-outs.
Gas prices displayed further losses on Tuesday with the help of a milder weather forecast for next week, weakening oil and an improved supply outlook. Day-Ahead was the only contract to move higher as below average temperatures were expected across Europe today. In other news, coal continued to decrease as China revealed efforts to take prices to a ‘reasonable’ level ahead of high summer demand.