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 contracts were pushed higher by a rise in coal prices yesterday afternoon, with gas-fired power generation looking a more favourable source over the summer months, while nuclear availability remains low. The UK gas system was long, which led to losses at the start of the session, with further bearish resistance provided by a stronger Pound and a falling oil market.
The majority of gas contracts recorded a loss on Friday with improved supply weighing on the front of the curve. Temperatures were expected to remain above average over the weekend, while Norwegian flows increased and contributed to a long system. Far-curve prices were pressured down by a falling oil market as the US backed out of the Paris Agreement.
A drop in Norwegian exports and weaker LNG send-outs tightened the UK gas system yesterday, resulting in early morning gains on the near-curve. However, these gains were erased as the session progressed as demand levels are set to remain low today and over the weekend. Far-curve prices showed minimal movement with coal and oil markets largely unchanged.
Downward movement on the oil market transferred to gas prices on Wednesday, with Brent briefly dropping below the $50/b mark. Coal prices also moved down and applied further bearish pressure on the far-curve. Meanwhile, Norwegian flows increased and contributed to significant oversupply in the UK, resulting in losses at the front of the curve.