Markets This Morning
Energy prices are continuing their losses this morning as reports yesterday suggested that Iran are back at the negotiation table to reopen the Strait of Hormuz. The near-term risk premium is relaxing while the markets await the outcome of the talks, with more room to fall should the reopening occur. Yesterday evening Qatar stated that mediators were progressing the talks to end the war. UK wholesale gas prices are trading down 3.93p since the market opened at a price of 132.85p per therm. Crude oil prices are also relaxing further, the front-month Brent contract is down $0.32 this morning at a price of $79.04 per barrel.
Yesterday in Summary
UK wholesale gas and crude oil prices fell further on Tuesday as reports pointed to Iran nearing a deal with Oman and the US to reopen the Strait of Hormuz in the coming days. A reopening and a return to shipping through the strait would ease the risk premium built up since the war between the U.S. and Iran began in early March. The NBP front-month contract fell 4.24p to settle at 136.78p per therm, with the Day-ahead contract down 1.65p to 138.93p per therm. Brent crude fell for a fourth straight session, down $4.41 to settle at $79.36 per barrel. Losses were extended across the near-month GB baseload curve in correspondence with the NBP movements.
