Markets This Morning
The energy markets have opened higher this morning after Iran threatened to have Houthis close the Red Sea if the U.S. target it’s power infrastructure. Washington has stepped up its bombardment of Iran overnight and hit civilian infrastructures. NBP futures have added over 4.0% or 5.00p per therm with August last traded at 137.30p. The Winter contract is 5.14p up at 139.00p. The prompt has been lifted by the front months and the Day ahead last exchanged at 136.87p. Crude oil prices have also climbed this morning but not to the same extent as gas. Brent for September delivery is 1.9% up at $85.82 a barrel. Carbon EUAs continue to shed premium this morning with the Dec-26 contract down €1.19 to €78.02 per tonne.
Yesterday in Summary
The continued hostilities between the U.S. and Iran provided support for near NBP futures on Thursday. Renewed concerns over the disruption to the Strait of Hormuz have raised concerns for European gas storage levels which currently stand at 53.0% full. The August contract traded between 129.18p and 134.46p per therm amid some volatility, before settling 1.10p up at 131.98p per therm. There was some profit taking in the crude oil markets after Brent hit a one-month high earlier in the week and the global benchmark fell by 72 cents to $84.23 a barrel. Carbon EUAs were down 2.3% or an average of €2.22 per tonne ahead of the EU commission’s proposals for market reform.
