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.
Yesterday’s session was quite turbulent with early morning losses, a rebound in the afternoon and a sharp drop before the end of trading. The main driver of gas prices was the oil market, with news that Libya are set to ramp up production levels, resulting in the largest decrease in prices for two years.
Gas prices were pushed higher by rising coal and oil markets in the morning but eased in the afternoon. Brent moved down towards the end of the session, weighing on the far-curve, while prices at the front of the curve were pressured down by an oversupplied system following a slight drop in CCGT demand.
The government has made a number of proposals to create a new nuclear safeguard plan which would come into action when the UK leaves the EU.
Increases across coal, carbon and oil markets helped to lift gas contracts yesterday afternoon, with Brent in particular rising by over $1/b due to supply issues. The Pound also weakened against the Euro, providing additional bullish pressure, while the supply/ demand picture was almost unchanged from last week.