This Morning
Gas prices opened higher this morning after the U.S. and Iran exchanged attacks on oil tankers over the weekend. U.S. and Iranian forces targeted vessels in waters around Iran on Saturday, including three Iranian oil carriers struck by U.S. forces and three tankers that Iran said it targeted while travelling on unauthorised routes through the Strait of Hormuz. The NBP front-month contract was last trading 3.89p higher at 182.7p/therm, having reached an earlier high of 186.83p/therm. Fewer LNG arrivals are expected into Western Europe this week, while the demand outlook remains broadly unchanged. Norwegian export nominations stand at 280.9 mcm/day, below typical flows of around 340 mcm/day as the final stretch of summer maintenance continues. Front month Brent crude is also higher, up $0.35 at $96.63/bbl.
Friday in Summary
Energy markets finished higher on Friday as renewed U.S.-Iran hostilities and tighter supply conditions supported prices across gas, power, carbon and oil. UK NBP Oct-26 gas settled at 178.81p/therm, steadying on Friday but still up 10.32p over the course of the week while lower wind forecasts lifted prompt prices. GB front-month baseload closed at £140.25/MWh, up £7.75 over the week, with Day-Ahead prices also rising sharply. Dec-26 EUAs settled at €84.18/tonne, extending their weekly gain to 1.8% and remaining above key moving averages. Brent crude closed at $96.28/bbl, up $8.25 over the week, as geopolitical risks, refinery disruptions and record U.S. diesel prices added to bullish sentiment.
