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.
The UK gas system remained long throughout Thursday’s session as milder temperatures reduced residential demand and a rise in wind levels resulted in lower CCGT demand. This helped contracts move down as the session progressed, with little support provided by coal and oil markets.
A milder weather outlook for the rest of the month and a sharp drop in oil prices helped gas contracts move down across the curve on Wednesday. The system remained oversupplied despite maintenance at a Norwegian gas field, while weaker coal also contributed to losses. In other news, production cuts in Holland were delayed for 12 months, providing additional bearish pressure.
Prices moved down yesterday due to an upward revision in temperature forecasts for the rest of the month, pointing to weaker demand levels. Coal and oil markets also displayed strong losses which helped contracts at the back of the curve move down, although the Euro continued to strengthen against the Pound, limiting some of the losses.
Demand levels reached their highest levels in 2017 so far, pushing contracts higher yesterday. This resulted in a rise in European exports into the UK, although healthy Norwegian supply helped to relieve the strain. Further out, a weaker Pound provided support but coal and oil moved down in the afternoon, limiting the gains.