Markets this morning
As strikes between the U.S and Iran continue to be exchanged, UK wholesale gas prices have opened higher again this morning. Despite reports of a new 10-day ceasefire being discussed between the two nations, the persistent battle in the region is supporting the gas risk premium, with the threat of a Yemen Houthi naval blockade of Saudia Arabia risking further shortages of supply. The front-month NBP contract is trading up 2.70p at a price of 144.16p per therm. Crude oil price have opened marginally lower as markets weigh up the reports of this potential new ceasefire. The front-month Brent contract is trading at $88.74 per barrel, down $0.48 since the market opened.
Yesterday in Summary
UK wholesale gas extended its gains on Monday as escalating tensions in the Middle East continued to raise concerns over security of supply. The collapse of the memorandum of understanding, coupled with a reported two energy cargo vessels being struck while transiting the Strait of Hormuz pushed the geopolitical risk premium higher. The front-month NBP contract gained 2.71p to settle at 141.46p per therm. Crude oil gains continued its gains seeing the front-month Brent contract trading above $90 per barrel for the first time since June 11th, contract relaxed to a settlement of $89.22 per barrel following a rise of $1.12 on the day.
