Markets This Morning
The UK wholesale gas market opened higher this morning, although prices have since retreated back from earlier highs. Diminishing prospects of a deal to end the conflict between the U.S. and Iran are supporting prices, after the U.S. ruled out extending the ceasefire following yesterday’s expiration of the memorandum of understanding. The front month contract last went through at 154.38p per therm, up 1.80p on yesterdays close, but down from an earlier high of 156.00p per therm. Crude oil prices have also extended yesterday’s gains, albeit at a more modest pace. Continued security concerns in the Strait of Hormuz have lifted the front month Brent contract up by just 12 cents, to last go through at $90.99 a barrel.
Yesterday in Summary
UK wholesale gas prices rose on Monday as the stalemate between the U.S. and Iran continued and hopes of a resolution to the conflict faded. Bullish rhetoric from both Washington and Tehran added further upside, with the U.S. President threatening to bomb Oman and while a senior Iranian official warned of further attacks if the U.S. to implement an interim peace deal within a matter of weeks. The front month NBP contract gained 1.31p by the close to settle at 152.54p per therm. Crude oil prices also continued to climb, with the ongoing geopolitical uncertainty pushing the front month Brent contract up by $2.35 to close at $90.87 a barrel, its highest close in over 3 weeks.
