Markets This Morning
Near curve UK wholesale gas prices are trading higher this morning after briefly dipping below Friday’s close earlier in the session. Prices remain elevated amid escalating tensions between the U.S. and Iran, alongside expectations of an announcement from Washington later today regarding new U.S. financial sanctions on Iran. U.S. Treasury Secretary Scott Bessent is due to hold a press conference later today following threats to impose “the toughest sanctions in history” on Iran. The front month contract last went through at 164.18p per therm, a gain of 1.60p on Friday’s close. Meanwhile, the Q4 26 contract is trading at a 1.42p discount to its previous close. Crude oil prices are showing moderate losses, with the front month Brent contract shedding $1.18 so far to last transact at $93.21 a barrel.
Yesterday in Summary
UK wholesale gas prices moved higher on Friday, supported by the ongoing stalemate and geopolitical tensions between the United States and Iran. Concerns over Norwegian supply availability, low European storage inventories and subdued LNG flows through the Strait of Hormuz all added to the upside. The front month NBP contract increased by 1.35p by the close to settle at 162.58p per therm. Crude oil prices moved higher for a sixth consecutive session on heightened expectations of tighter supply over the coming weeks. The front month Brent contract gained 61 cents by the close to settle at $94.39 a barrel.
