Markets This Morning
UK wholesale gas prices have opened higher this morning, retracing a portion of yesterday’s sharp losses. Wednesday’s decline may have been an overreaction to renewed optimism over what remains a fragile and uncertain geopolitical outlook, with the front month contract last going through at 133.00p per therm, up 4.96p on its previous settlement. Crude oil prices meanwhile are more subdued with markets remaining cautious over the Iran-Oman talks and whether they will restore flows via the Strait of Hormuz. The front month Brent contract last went through at $79.47, a increase of just 2 cents day-on-day.
Yesterday in Summary
Growing expectations that the Strait of Hormuz could soon reopen drove a sharp decline across UK wholesale gas prices on Wednesday. Positive comments from Donald Trump regarding negotiations as well as reports that Iranian and Omani officials had completed a draft transit agreement renewed hopes of a potential resolution to the conflict. The front month contract shed 8.74p day-on-day to settle at its lowest close in over 3 weeks. Crude oil markets were more mixed on the day with support from fresh security concerns partially mitigated by the easing geopolitical sentiment. The front month Brent contract gained just 9 cents by the close to settle at $79.45 a barrel.
UK wholesale gas prices have opened higher this morning, retracing a portion of yesterday’s sharp losses. Wednesday’s decline may have been an overreaction to renewed optimism over what remains a fragile and uncertain geopolitical outlook, with the front month contract last going through at 133.00p per therm, up 4.96p on its previous settlement. Crude oil prices meanwhile are more subdued with markets remaining cautious over the Iran-Oman talks and whether they will restore flows via the Strait of Hormuz. The front month Brent contract last went through at $79.47, a increase of just 2 cents day-on-day.
