Markets This Morning
UK gas prices have edged up modestly so far this morning with concerns over supply tightness lingering. As the market awaits further developments regarding the U.S.-Iran conflict, the front month contract last went through at 150.50p per therm, up 0.78p on yesterday’s close. Faced with a rise in cooling demand driven by the impending UK heatwave as well as reduced wind generation levels, gas for power demand is set to increase over the coming days, supporting the prompt market. The Day ahead contract last went through at 149.75p per therm, a gain of 0.50p day-on-day. Crude oil prices have also edged higher following comments made by Donald Trump yesterday that will likely complicate efforts to reopen the Strait of Hormuz. The front month Brent contract was last observed at $89.46 a barrel, up $1.74 on yesterday’s close.
Yesterday in Summary
Heightened geopolitical uncertainty coupled with renewed supply concerns drove UK wholesale gas prices higher on Monday. A lack of progress in negotiations over the reopening of the Strait of Hormuz and ongoing U.S.-Iran tensions made it clear that a resolution was still some way off. Meanwhile, news that a maintenance outage at the Ormen Lange gas field had been extended for a further 4 months, coupled with subdued LNG arrivals for August painted a tight supply scenario for the coming months. The front month contract gained 13.77p, or 10.1% by the close, while Winter 26 increased by 12.52p to settle at 149.21p per therm. Crude oil markets also edged higher, with the front month Brent contract gaining $4.17 by the close.
UK gas prices have edged up modestly so far this morning with concerns over supply tightness lingering. As the market awaits further developments regarding the U.S.-Iran conflict, the front month contract last went through at 150.50p per therm, up 0.78p on yesterday’s close. Faced with a rise in cooling demand driven by the impending UK heatwave as well as reduced wind generation levels, gas for power demand is set to increase over the coming days, supporting the prompt market. The Day ahead contract last went through at 149.75p per therm, a gain of 0.50p day-on-day. Crude oil prices have also edged higher following comments made by Donald Trump yesterday that will likely complicate efforts to reopen the Strait of Hormuz. The front month Brent contract was last observed at $89.46 a barrel, up $1.74 on yesterday’s close.
