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 across the curve on Thursday, with longer-dated contracts displaying the larger gains. Bullish pressure was provided by stronger commodity markets, with planned maintenance also expected to reduce supply to the UK.
Gas prices were largely unchanged for the majority of Wednesday’s session but ended the day with mixed changes. Falling oil had little impact on the far-curve, with coal and carbon also showing a decrease.
The UK regulator, Ofgem has reiterated the importance of price control in terms of supporting the decarbonisation of the nation’s energy network. From 2023, a ‘tough but fair’ approach has been proposed for electricity distribution network operator (DNOs) price control.
Gas prices remained bearish on Tuesday, following global commodities which saw a large sell-off due to weak oil demand and the US/ Chinese trade war. Oil and coal displayed strong losses, weighing on the far-curve, while planned maintenance in Norway limited losses at the front of the curve.
Near-curve gas prices recorded losses on the back of an oversupplied system and a healthy LNG outlook. The losses filtered through to the rest of the curve with bearish coal and oil markets weighing on longer dated contracts.