Markets This Morning
The UK gas markets are closed today due to the bank holiday. Crude oil markets however have opened stronger this morning amid reports of a resumption of U.S.-Iran military attacks over the weekend. U.S. President Donald Trump stated in a social media post on Sunday that Iran’s energy hub at Kharg Island was being “blown to smithereens”. However, there was no evidence that the island was under attack, with Iran stating that oil operations continued as normal. As tensions remain heightened and negotiations remain at an impasse, the front month Brent contract most recently traded at $91.05 a barrel, a gain of $1.74 on its previous close.
Friday in Summary
UK wholesale gas and crude oil prices retreated on Friday following reports that Qatar, Oman and Pakistan were pursuing mediation efforts with Iran in an effort to dampen tensions and reopen the Strait of Hormuz. The front month NBP contract for October delivery shed 3.67p to settle at 164.82p per therm, while the Winter 26 contract closed at 165.34p per therm after shedding 3.93p day-on-day. Reports that the U.S. Federal Reserve was considering increasing interest rates later this year in an effort to curb inflation added further downside across oil markets. The front month Brent contract declined by 39 cents to close out the week at $89.31 a barrel.
