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 decreased yesterday as demand levels remained quite weak and flows from Norway and Russia improved. However, demand levels are set to rise over the next few days due to a drop in temperatures and lower wind levels; limiting the downward movement. Elsewhere, a drop in coal prices applied additional bearish pressure further along the curve.
Gas prices displayed little movement on Friday despite an expected rise in demand this week. Contracts were pressured down by a comfortable system, while coal and oil markets were also stable. Stronger wind levels reduced the need for CCGT generation, while UKCS production increased to make up for a drop in Norwegian flows.
Near-curve gas prices were pressured down by bearish fundamentals, as systems across Europe are comfortable on the back of weak demand. Mild temperatures continued to weigh on residential demand, with levels 15% below the seasonal norm in the UK. A stronger Pound also helped towards the losses further along the curve.
Gas prices displayed gains across the curve yesterday as a slight drop in temperatures has resulted in a higher demand outlook, with weaker Norwegian flows also a supportive factor. Further out, contracts were largely dictated by increases on the oil market.