Markets This Morning
Brent has added 4.3% or $3.96 a barrel this morning in response to increased threats on oil transit routes out of the Middle East. Saudi oil tankers have been forced to turn back in the Red Sea following Houthi threats. The Iran backed rebels have threatened shipping passing by the Bab el-Mandeb strait in the Red Sea, a key route to Asia for Saudi oil exports. In the gas markets, the August contract opened a half a penny above last night’s close, but gains have been extended through the first hour of trading and the front month is now 4.31p up at 148.88p. The Winter-26 contract has added 4.10p and contracts past this have increased by around 2.50p per therm.
Yesterday in Summary
Near NBP futures rose for a seventh day in succession yesterday as August closed 3.11p per therm higher. The markets responded to increased hostilities between the U.S. and Iran and concerns that an escalation of the conflict could delay the recovery in Qatari LNG exports. Prompt prices were buoyed by the gains on the near curve and the Spot and Day ahead added 2.90p and 2.45p respectively. In the crude oil markets, Brent settled at its highest level for over five-weeks adding $1.79 a barrel to close at $91.01. The threat of a blockade of the Red Sea increased concerns of an added disruption to crude oil exports.
