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 yesterday as temperatures across Europe are set to turn milder next week which will reduce demand levels. However, the losses were smaller than previous sessions as demand was set to peak today and UKCS and Norwegian flows were limited by unplanned outages, while coal and gas markets also ticked higher.
A warmer weather outlook continued to pressure down gas contracts yesterday as demand levels will decline over the next couple of weeks; a stronger Pound also helped to weigh on prices. The bearish movement was more evident at the front of the curve as losses further out were limited by a rebound in oil contacts.
The weather forecast for next week is set to be milder than initially expected which helped towards losses on near gas curve on Tuesday. An LNG delivery from Peru is also set to arrive in the UK before the end of the month which further weighed on prices. Meanwhile, movement further along the curve was less visible as stronger coal prices limited any decreases.
Gas prices moved down on Monday, shaving off some of the significant gains which were recorded last week. Weakening coal and oil markets helped to weigh on the far-curve, while improved Norwegian supply and an expected rise in temperatures later in the month contributed to losses at the front of the curve.
A cold weather forecast for the rest of February helped gas contracts move higher on Friday, with a weak LNG outlook and low storage levels also fuelling the bullish sentiment. Meanwhile, Norwegian exports to mainland Europe decreased and there was little support provided by the coal and oil markets.