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.
A drop in coal and mild weather helped to exert bearish pressure across the gas curve yesterday afternoon. Temperatures remained above average yesterday and were forecast to stay mild today, reducing LDZ demand. Wind levels were also set to increase today, meaning less reliance on gas-fired power generation.
Gas prices moved higher yesterday, with a colder weather outlook dictating movement on the near-curve and stronger fuel markets supporting contracts at the back of the curve. The system was long despite maintenance in Norway and healthy wind reduced CCGT demand, limiting gains on the prompt.
Another revision in weather forecasts has pointed to a drop in temperatures next week, providing support on the near gas curve yesterday. Maintenance at a Norwegian gas field also contributed to gains, with a rebound in coal helping towards upward movement further out. However, gains on the prompt were limited by healthy wind output and below average demand.
Near-curve gas prices moved down on Friday with a mild weather outlook for the weekend and a slightly long system helping towards the losses. A recovery in the Pound helped towards downward movement at the back of the curve as oil and coal markets were stable.