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 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.
16th June 2017 | Posted by: Ben Crawley | Market Analysis
News of the Bank of England’s decision not to raise interest rates has strengthened the Pound against the Euro, which is reflected in a bearish outlook at the close yesterday, with reduced demand due to warm weather weighing further on prices.
Gas prices displayed losses yesterday as the two-week shutdown of the interconnector pipeline will result in surplus supply, while the LNG outlook was improved. Strong downward movement could also be seen on the far-curve following a sharp decrease in oil.
Gas prices moved down on Tuesday as the outlook for Qatari LNG supply is positive; a number of LNG deliveries have arrived in Egypt, with more vessels being transited via the Suez Canal. Meanwhile, maintenance work will start at the IUK interconnector today which will last for two weeks, restricting exports from the UK to Europe.