Markets This Morning
The energy markets have continued to weaken this morning as hopes of talks between Washington and Tehran rise. Meanwhile, Oman and Iran have discussed a proposal for the temporary opening of a corridor for the safe passage of shipping through the Strait of Hormuz. GB wholesale natural gas prices have extended the losses witnessed yesterday. The September contract was at 157.10p on the last trade, down 6.01p per therm this morning. The Winter contract has also fallen sharply with the latest trade for the front season down 5.35p at 160.00p. Prompt prices have also eased with the Spot and Day ahead down 4.10p and 3.00p respectively. Crude oil prices have also yielded premium with the October contract $2.34 a barrel down at $86.24.
Yesterday in Summary
Following the announcement of sanctions on Monday from the U.S. Treasury Secretary, crude oil prices continued to tumble on Tuesday. The market is hopeful that the switch to economic sanctions will force Tehran back to talks which could eventually lead to the reopening of the Strait of Hormuz. Brent for October delivery fell by $3.59 to $88.58 a barrel on the day. In the gas markets, the front month declined by 3.0% or 5.09p per therm to settle at 163.11p as market took comfort from the U.S. switching focus away from military conflict to sanctions on Iran. The Spot and Day ahead also fell by over 5.00p in response to the near curve declines.
