Archived Summaries

Tuesday 07 August 2012
Market Close
  Oil prices continued their upward movement on Tuesday as confidence begins to grow that further stimulus packages in both the U.S. and Europe will be announced shortly.  An explosion on Monday believed to have been caused by a terrorist bomb on an oil pipeline from Iraq to Turkey that carried the equivalent of 360,000 barrels a day has forced closure of that pipeline and has added further pressure on tight global supplies .  This has reinforced market concerns about stability in the Middle East region and combined with the dollar weakening slightly against the Euro, this has further contributed to the pressure on prices.   Brent closed up by $2.45 or 2.2% with Nymex also closing higher by $1.47 or 1.6%.  The UK system started the day with a small deficit with forecast supplies 12 MCM short of demand but as the day progressed flows of LNG at 51 MCM, predominantly from Milford Haven meant the  system was well supplied.  Despite the healthy supply position the upward movement of oil pushed both the gas prompt and futures higher.   Day ahead gas moved higher by 1.30p with Q4 and Winter 2012 closing higher by 1.13p and 1.25p.  Futures contracts closed higher in a range between 0.81p and 1.27p on the day.