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.
Near-curve gas prices decreased on Friday as the cold stint at the start of this week is expected to be short-lived and the forecast for the rest of January is mild, resulting in a weaker demand outlook. Supply levels were also healthy with no constraints on Norwegian flows. Oil and coal markets had little impact on the far-curve, with most contracts recording a small loss thanks to a stronger Pound.
A 50MW portfolio of battery storage projects is now operational having been connected to the national grid. The projects represent the UK’s biggest portfolio of utility-scale, enhanced frequency response battery storage sites.
LDZ demand increased slightly, while a drop in wind generation led to a sharp rise in CCGT demand on Thursday. However, any upward movement was offset by comfortable supply levels, despite an expected drop in temperatures in the coming days. Further out, contracts found support from bullish coal and oil markets and increased as the session progressed.
A significant rise in wind levels yesterday resulted in a drop in CCGT demand, while residential demand was reduced by milder weather. Meanwhile, the outage at Oseberg was resolved, resulting in a rise in imports to the UK. This increase in Norwegian flows, combined with improved UKCS production contributed to a long system and prices along the near-curve moved down.
Gas prices moved down during yesterday’s session as milder weather is expected over the coming days and supply levels are comfortable. UKCS has recovered as the Forties pipeline was expected to be fully operational today, resulting in a long system. However, downward movement further along the curve was limited by stronger coal and oil markets.