Markets This Morning
Energy prices have retreated off yesterday’s highs in early trading this morning after reports that Gulf foreign ministers are to meet in Oman with their Iranian counterpart on Monday. It’s the first-time members from all six Gulf Cooperation Council will meet with an Iranian representative since the war began at the end of February. It is hoped the group can come to an understanding and agree a way forward for shipping to use the Strait of Hormuz although a full reopening would require buy-in from the U.S. and Iran. The front month for the NBP, October last traded at 201.54p per therm, down 3.53p while the Winter-26 contract last traded down 4.47p at 201.50p. Brent has shed around 2.4% and the November contract is $2.65 lower at $104.98 a barrel.
Yesterday in Summary
Concerns of additional disruption to oil and gas tankers using the Red Sea increased yesterday after reports that the Iranian backed Houthi Rebel group took control of the Yemen City of Mocha, an international port just north of the Bab el-Mandeb Strait in the Red Sea. Earlier, the comments from Donald Trump dampened hopes of a return to talks and energy prices firmed from the get-go. After a volatile session, near NBP futures added around 3.8% or an average of7.40p per therm yesterday. In the crude oil markets, Brent continued to climb above the $100 a barrel mark and settled at $107.63, up $6.42 a barrel for the day.
