Intra-day Report
The UK gas and power markets were closed due to the bank holiday yesterday, but the crude oil markets were under pressure from hopes that the current memorandum of understanding for peace could be close to a final agreement. Marco Rubio raised expectations by telling reporters that he was hoping to have an announcement late on Monday. Tehran has said there is progress, but it was too early to say an agreement was imminent. Brent for July delivery traded to a low of $95.95 before settling 7.2% or $7.40 down at $96.14 a barrel.
This morning
Near NBP futures opened lower this morning with June, which is due to expire later in the week trading down to 112.13p per therm after yesterday’s bank holiday in the UK. Some of the early losses have since been recovered and the remaining summer months are trading around 4.20p per therm down on Friday’s close following reports of U.S. strikes on Iranian missile sites and boats attempting to emplace mines in the Strait of Hormuz. These attacks could sour yesterday’s optimism of an agreement being close. Both sides were reported to be agreeable to opening the Strait of Hormuz, ending the U.S. blockade and extending the ceasefire for 60 days to allow for further negotiations on Tehran’s nuclear programme. Crude oil prices have recovered some of yesterday’s losses with Brent $3.03 up on yesterdays close having last exchanged at $99.17 a barrel.
