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 moved down yesterday as warmer and windier weather is expected which will reduce demand. Maintenance at the Interconnector will also limit exports, resulting in excess supply in the UK, while looking further ahead, the upcoming Easter weekend will see a drop in industrial demand.
In the recent Power Responsive report, the National Grid Electricity System Operator (ESO) suggests that policy changes are ‘causing an uncertain outlook for demand side flexibility’.
Gas prices increased during Tuesday’s session due to a tightening of supply and an increase in trading. Supply issues in Norway have impacted European systems, while temperatures are expected to dip slightly later in the week, which supported the prompt.
Gas prices fluctuated throughout Monday’s session, initially opening the session at a discount, before increasing to their highest level this year so far and then decreasing again. Prices were dictated by commodity markets in one of the most volatile trading days in a number of months.
Gas prices increased on Friday thanks to more buying interest from traders, in addition to a drop in supply from Norway which tightened European systems. Despite the bullish sentiment, the short term outlook is healthy with a rise in LNG send-outs and a warmer weather forecast.