Markets This Morning
The United Arab Emirates have imposed an indefinite trade embargo on Iran due to yesterday’s missile attacks and crude oil prices have extended recent gains. Tehran have denied the attacks, but the escalation has driven more premium into crude oil prices this morning. The October contract for Brent last traded 97 cents up at $91.99 a barrel. In the gas markets, near months are marginally lower after prices hit new four-year highs yesterday. The September contract for the NBP last exchanged at 156.40p, down 0.59p per therm while the Winter contract is a half a penny lower at 157.25p. Prompt prices are mostly flat with the Day ahead product 0.20p lower at 156.80p on the latest trade.
Yesterday in Summary
Near NBP futures reached a four-year high yesterday with September settling at 156.99p per therm as negotiations between Washington and Iran stalled. Concerns over winter storage supplies also added to the upside yesterday as near months climbed by an average of 3.0%. In the crude oil markets, Brent settled at its highest level in over three-weeks at $91.02 a barrel. With Trump saying no talks with Iran are scheduled and Tehran insisting on their demands being met hopes of a deal being concluded between the two sides are fading.
