Archived Summaries

Thursday 16th August 2012
Market Close

Yesterday Front month Brent crude oil delivered its highest end of day settlement price since  2 May 2012 yesterday, when the expiring September 2012 contract closed the day at $116.90 a barrel, up 65 cents on the day.  A decline for the dollar and the release of some price supportive U.S. stock data were the main supporting factors on the day, along with on-going tensions in the Middle East.  The October contract increased by 96 cents on the day, closing at $115.27 while, further out the curve, the backwardation in the market was more evident still, with 2013 contract closing in a range of $$107.97 to $112.62 and 2014 contracts settling at an average price of $104.80 a barrel.  On the gas market, a strong supply position and on-going weak demand forced prompt prices down by a range of 1.10p to 2.90p with gas for within day delivery threatening to break below the 50.00p mark.  The weakness in the prompt market failed to impact the futures market to any great extent though, with near contracts closing the day broadly felt, retaining the previous days losses, while longer contracts saw a modest uplift in the order of 0.20p to 0.30p in response to on-going strength in crude oil prices.