Archived Summaries

Monday 30 July 2012
Market Opening
  Crude oil prices and UK natural gas prices have fallen marginally through early trading today with the dollar's recovery of Friday's losses against the euro representing the only significant shift in fundamentals since the close of business on Friday.  While Brent crude gained $1.21 on Friday, the full retracement of the dollar's decline on Friday has only brought about a decline of around 40 cents a barrel in the September Brent contract this morning while the Nymex contract is trading flat through early trading.  Of course, the crude oil market's reaction to the currency movements from Friday to today makes reasonable sense, as the potential for further dollar losses remains high on the radar given the heightened expectations for further U.S. financial stimulus packages which will most likely include some form of quantitative easing.  Meanwhile, on the gas market, prices have also moved lower with futures contracts out to March 2013 down by a range of 0.31p to 0.37p while prompt prices are largely stable against Friday's close.  Latest trades for within day and day ahead delivery have gone through at 53.90p and 53.65p while the balance of week contract has gone through at 53.75p.