Markets This Morning
Energy prices have rebounded Friday’s losses this morning in a response to a step up in attacks on Saudi Arabian energy infrastructure and further Iranian strikes on ships traversing the Strait of Hormuz. The Gulf states had been reported to meet Iran around a temporary solution to reopen the waterway to shipping today, however this morning the Omani foreign minister has stated that the talks have been postponed in “the interests of consensus” between the littoral states. UK wholesale gas prices are trading up this morning with the front-month NBP price rising 9.23p since the market opened at a price of 207.49p per therm. The front-month Brent benchmark for crude oil prices has stepped up $3.28 at a price of $107.89 per barrel.
Yesterday in Summary
UK wholesale gas and crude oil prices eased through the day on Friday as hopes grew that Iran and Oman’s planned Monday meeting could reopen the Strait of Hormuz to shipping, with transit still thin at just 7 vessels on Thursday against 11 the day before. The front-month NBP closed 6.81p lower at 198.26p per therm. The reports of a temporary agreement among the Middle Eastern foreign ministers to ease Hormuz shipping pressures pushed crude oil prices lower despite an early rise on reports that Houthi militants had struck a pumping station on Saudi Arabia’s East-West Pipeline, threatening up to seven million barrels per day of supply. The front-month Brent settled $3.02 lower at $104.61 a barrel.
