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 displayed mixed movement yesterday with a tight UK gas system offering support at the front of the curve and a falling oil market weighing on the far-curve. A drop in Norwegian supply and a rise in storage injections contributed to the short system, despite lower demand levels. Elsewhere, coal prices stabilised and the Pound weakened further against the Euro.
Gas prices increased during Monday’s session with support provided by maintenance at Norwegian gas fields and a short UK gas system. Weaker wind resulted in higher gas-fired generation, while demand for storage injections was also stronger due to the low cost of the Day-Ahead contract compared to Front-Month.
Gas contracts added to their price on Friday as the UK gas system was short due to a drop in Norwegian flows. The significant reduction in imports into the UK was caused by unplanned outages at the Kvitebjorn and Kristin fields. Upward movement on the oil market also transferred to gas and far-curve contracts closed at premium.