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 shed from their price at the start of the session but recovered in the afternoon following a drop in North Sea production due to an unplanned outage which restricted flows at the St-Fergus terminal. Further support was also provided by a rise in oil prices, although upward movement at the front of the curve was restricted by healthy LNG send-outs, with numerous deliveries expected to dock in the UK.
A decision has not yet been made in regards to the proposed exemption for Energy Intensive Industries (EII) from RO and FiT charges.
Healthy supply levels helped to pressure down near-curve gas contracts on Friday, while prices further along the curve were more resilient. A weaker Pound offered some support to contracts but stronger LNG send-outs and a milder weather outlook remained the main market drivers.
Gas prices continued to display a downward trend yesterday on the back of a healthy supply picture and weakening coal & oil. LNG send-outs increased further with deliveries expected to dock in the UK over the next couple of days, while above average temperatures are expected next week, also weighing on prices. Elsewhere, restrictions on Chinese domestic coal production continued to effect the worldwide market.
Improved Norwegian and UKCS supply, as well as an upward revision in temperatures for next week helped to pressure down contracts on the near gas curve yesterday morning. However, a rise in coal and oil contracts helped to recover these losses in the afternoon, with a weaker Pound also adding to the bullish sentiment.