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.
Trading was limited yesterday due to the Bank Holiday, however, warmer weather and stronger coal prices helped European markets move higher. Supply remained tight, while a weakening Pound continued to support contracts.
Outages in the North Sea resulted in a balanced system yesterday, offering support to gas contracts. Flows via Langeled stood at 70mcm, however levels are expected to drop back to around the 40mcm norm next week which could result in strong undersupply. Meanwhile, the Pound continued to weaken and the outlook for oil was bullish due to the impending storm in the US.
Hurricane Harvey is set to be the biggest to hit the US in almost 12 years and oil facilities across the Texan coast are being evacuated.
Fresh outages at gas fields continued to impact UKCS production and imports from Norway yesterday, offering support to near-curve contracts. Oil prices also rallied higher and the Pound weakened, contributing to gains further along the curve.
Gas prices moved higher yesterday afternoon, erasing some of the morning’s losses which were a result of an improved supply picture. Bullish pressure was provided later in the session as the impact of the Heimdal’s outage was revised higher and the Euro also strengthened against the Pound.