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 contracts moved higher yesterday with support coming from a strengthening coal market and an expected drop in temperatures in the second half of February. Storage levels were close to record lows across Europe, with an outage at the Rough storage facility continuing to fuel bullish pressure in the UK.
Gas prices displayed strong gains yesterday due to a technical rebound and low storage levels. Temperatures are set to remain mild over the coming days but should turn colder in the second week of February, offering further support to the curve.
Gas prices moved down on Friday as temperatures are expected to increase during the first week of February, resulting in lower demand levels. A rise in wind power will further weigh on demand as the UK will be less reliant on CCGT generation, losses on the oil and coal market were also factors behind the bearish movement.
Gas prices weakened yesterday with mild weather expected from this weekend on, acting as the main market driver this week. Wind power is also set to improve which will reduce CCGT generation and coal prices recorded further losses, adding to the bearish trend.
An expected drop in gas demand in the coming days, as well as weakening coal prices weighed on gas contracts yesterday. A stronger Pound also helped towards the losses, although the downward movement was slightly limited by a tight LNG outlook and low stocks.