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 displayed gains across the curve yesterday as a slight drop in temperatures has resulted in a higher demand outlook, with weaker Norwegian flows also a supportive factor. Further out, contracts were largely dictated by increases on the oil market.
The South Hook LNG terminal suffered an unplanned outage yesterday morning and Norwegian flows via the Langeled pipeline also dropped, tightening the UK gas system. However, the outage was quickly resolved and LNG send-outs improved throughout the session, resulting in oversupply and a rise in exports to Belgium. Prices were generally stable with a weakening Pound offering some support but falling coal and oil limited any gains on the far-curve.
Long gas systems across Europe and a weak demand outlook resulted in further downward movement on Monday; the UK gas system in particular was oversupplied by 50mcm. LNG send-outs remained high which pressured down the prompt and the losses filtered through to the rest of the curve, with coal and oil markets providing little support.