Markets This Morning
UK wholesale gas prices have retraced yesterday’s losses and then some this morning as talks to end the U.S.-Iran war remain uncertain. Although President Trump said on Sunday that he was holding off on new attacks on Iran pending ongoing talks, Iran’s Foreign Ministry spokesperson rejected Trump’s claims yesterday, saying that no negotiations were taking place. With geopolitical uncertainty feeding risk premium, the front month NBP contract last went through at 147.51p per therm, a gain of 6.49p on Monday’s close. Meanwhile, crude oil markets have responded similarly, with the front month Brent contract increasing by $2.28 so far this morning, having last gone through at $86.05 a barrel.
Yesterday in Summary
After days of escalating geopolitical tensions in the Middle East, news that further U.S. strikes on Iran had been called off by Donald Trump weighed on energy markets on Monday. The apparent shift in U.S. strategy raised expectations of renewed negotiations and the potential for a swift agreement to reopen the Strait of Hormuz. Although Iran denied that any talks were scheduled, the front month NBP contract fell by 3.26p to settle at 141.02p per therm, while the front month Brent contract settled at a 3-week low of $83.77 a barrel, after shedding $4.16 by the close. Losses were also felt across European carbon markets amid strong selling activity, while the GB Baseload curve fell in line with NBP losses.
UK wholesale gas prices have retraced yesterday’s losses and then some this morning as talks to end the U.S.-Iran war remain uncertain. Although President Trump said on Sunday that he was holding off on new attacks on Iran pending ongoing talks, Iran’s Foreign Ministry spokesperson rejected Trump’s claims yesterday, saying that no negotiations were taking place. With geopolitical uncertainty feeding risk premium, the front month NBP contract last went through at 147.51p per therm, a gain of 6.49p on Monday’s close. Meanwhile, crude oil markets have responded similarly, with the front month Brent contract increasing by $2.28 so far this morning, having last gone through at $86.05 a barrel.
