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 increased on Monday following strong growth on the oil market and a rebound in coal prices. Cold temperatures continued to lift demand levels in the UK which resulted in a short system in the afternoon, requiring an increase in storage withdrawals.
Demand levels were above the seasonal norm at the end of last week but improved Norwegian supply helped to curb some of the upward movement as the system was long throughout the session. The far-curve also displayed some losses in the afternoon on the back of a drop in coal prices.
Increased CCGT generation and higher LDZ demand led to increases across the near gas curve on Thursday. The system was oversupplied on the back of improved Norwegian flows which capped the gains somewhat, while the far-curve was pushed higher by rising coal.
Cold weather continued to support the gas curve yesterday as demand levels were above the seasonal norm. Rising coal prices also offered support to the far-curve in a bullish session. Temperatures are set to remain below average next week and the short-term LNG outlook is weak.
Cold weather offset the effects of improved Norwegian supply yesterday; prices initially opened lower but these losses were erased as the session progressed. Brent and coal also posted further gains which contributed to gains further along the curve.