Markets This Morning
Trading has been volatile in the UK gas market this morning. The front month opened 3.00p higher and extended early gains peaking at 150.43p per therm. The September contract has fallen back in the last hour, and the contract is below it’s opening at 146.50p which is down almost 4.00p intra-day. Yesterday’s optimism of a deal for the Strait of Hormuz is fading after reports of more attacks on shipping using the Red Sea overnight with Yemen reporting Houthi rebels have attacked a commercial vessel trying to navigate the Bab el Mandeb Strait. Meanwhile the U.S. navy have fired on a ship trying to enter an Iranian port and Trump has claimed to have control of the Strait of Hormuz. In the crude oil markets Brent is trading closer to last night’s close at $89.25 a barrel.
Yesterday in Summary
With Pakistan’s Defence minister raising hopes that the U.S. and Iran negotiations were getting close, NBP futures declined yesterday. Earlier volatility saw near months extend Monday’s gains before supply concerns were eased by hopes of a possible deal. The front month for the NBP declined by 5.50p to 144.22p per therm while the Winter contract settled at 144.96p down 4.25p. Crude oil prices increased through the afternoon after Iran’s newly appointed secretary of the Supreme National Council stated that America must accept their terms to end the war and Brent for October delivery added $1.19 a barrel.
