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.
Downward movement on the oil market transferred to gas prices on Wednesday, with Brent briefly dropping below the $50/b mark. Coal prices also moved down and applied further bearish pressure on the far-curve. Meanwhile, Norwegian flows increased and contributed to significant oversupply in the UK, resulting in losses at the front of the curve.
Gas prices moved higher on Tuesday with support coming from rising coal and power markets, with an expected drop in temperatures next week also a factor. Meanwhile, Langeled flows were lower due to an unplanned outage at the Nyhamna processing plant which led to a tighter UK gas system, despite weak demand.
UK markets were closed yesterday due to the bank holiday but the majority of contracts ended Friday’s session at a discount. Warm weather over the weekend helped to reduce demand levels as expected, while the outlook for oil was bearish following the OPEC meeting. In terms of supply, exports via the IUK pipeline were very strong, helping to weigh on European prices.
The morning session was generally stable but small losses were recorded in the afternoon following a drop in oil prices and a warm weather outlook for today. A number of LNG deliveries are also expected to dock in the UK in the coming days and helped to counter the effects of a short system.