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 found support from an increase in coal and power contracts yesterday, with weak wind production and low nuclear availability resulting in an increased reliance on gas-fired power generation. The front of the curve also found additional support from an expected drop in temperatures next week. Elsewhere, the LNG outlook is forecast to remain tight for the rest of this month and throughout November due to limited deliveries.
Gas prices moved down on Friday on the back of a milder weather outlook for the weekend and at the start of this week, with a long gas system also a factor. The system was long in the afternoon following an increase in Norwegian imports and healthy Dutch flows via the BBL pipeline which hit a six-month high. A stronger Pound also helped to apply some downward pressure, although the losses were restricted by high coal prices.
The UK gas system was short throughout yesterdayâ€™s session which contributed to gains on the near-curve. Colder temperatures resulted in a rise in demand, with weak wind generation also increasing gas usage, while LNG send-outs remained low. Further out, contracts were generally bearish on the back of weakening coal and oil.
The majority of gas contracts moved down on Wednesday despite bullish pressure coming from the power market. A drop in coal helped to weigh on some prices, while an undersupplied gas system, due to a rise in demand continued to offer support. Norwegian imports into the UK were also lower, while the LNG outlook remains weak.