Markets This Morning
Energy prices are regaining their losses seen yesterday in this morning’s session as the U.S have threatened to extend their naval blockade of Iranian ports indefinitely. This compounds the already stressed supply concerns out of the region while the U.S.-Iran negotiations have no clear end in sight. Vessel transit has been lower than the month average this week as safety risk remains high, the UAE have reported two attacks on their vessels trying to traverse the waterway yesterday. UK wholesale gas prices are trading up 2.12p since the market opened at a price of 150.60p per therm. Crude oil prices are seeing the same, the front-month Brent contract is up $0.58 this morning at a price of $87.65 per barrel.
Yesterday in Summary
UK wholesale gas and crude oil prices eased on Thursday as talks to reopen the Strait of Hormuz stagnated and an absence of hostile aggressions between the U.S. and Iran lowered the risk premium. Uncertainty lingered about the negotiations, Iranian officials maintained the waterway was under their “control and management” opposite to U.S. President Trump’s assertion that Washington had “total control”. Meanwhile, vessel transits through the strait fell to a three-week low. The NBP front-month contract fell 1.43p to settle at 148.48p per therm, with the Day-ahead contract down 2.51p to 145.40p per therm. Brent crude fell $1.91 to settle at $87.07 per barrel, while WTI settled at $81.25 per barrel, down $2.02.
