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.
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.
It was announced yesterday that production at the Groningen gas facility would be cut by 10%, falling from 24bcm to 21.6bcm; additional restrictions will also be placed on output in colder years. This news offered some support to the curve later in the session but a warm weather outlook and the expected arrival of LNG deliveries in the coming week helped to restrict any gains.
Vattenfall have proposed plans to install large-scale battery storage at the Pen y Cymoedd wind farm.
Gas prices initially opened at a discount but rallied higher throughout the session on the back of stronger coal and oil markets. Meanwhile, the UK gas system was oversupplied following a rise in Norwegian flows and improved LNG send-outs at the South Hook terminal, weighing on the prompt. The market now awaits Thursday’s OPEC meeting, while on-going issues in Australia helped APi2 coal to hit its highest price since October 2014.