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.
Strong residential demand and a rise in CCGT generation supported gas contracts on Thursday despite improved supply levels which resulted in a long system. Bullish pressure was provided by higher power and carbon contracts, while oil and coal were generally stable.
A rise in oil prices helped to push gas contracts higher yesterday afternoon with further bullish pressure provided by stronger coal and carbon. LDZ demand is forecast to fall next week as milder temperatures return to the UK and an LNG delivery is expected to dock at South Hook on Monday, limiting gains on the near-curve.
Improved Norwegian supply helped gas contracts move down yesterday afternoon, erasing some of the morning’s gains. Strong wind generation reduced CCGT demand but colder temperatures lifted residential consumption. Further out, bearish movement was limited by a jump in oil prices and stronger coal.
Residential demand in the UK is expected to rise this week due to colder weather, offering support to the front of the curve yesterday. LNG supply also remained tight and bullish movement on the coal market continued to help far-curve contracts move higher. Meanwhile on the continent, Russian flows were down due a planned shutdown of the Nordstream pipeline.