Markets This Morning
UK wholesale gas prices have eased back from yesterday’s highs this morning, with the front month contract last going through at a 3.02p discount to yesterday’s close. Yesterday evening U.S. President Donald Trump signalled that Iran wanted to reach an agreement to end the conflict and that Washington were open to renewed negotiations. Despite this somewhat hopeful news, crude oil prices have continued to rise. The front month Brent contract traded above the $108.00 mark in earlier trade, driven higher over fears that the recent damage to Saudi Arabian energy infrastructure could take longer to repair than initially thought. The Brent contract for November delivery last went through at $107.64 a barrel, up $1.96 day-on-day.
Yesterday in Summary
UK wholesale gas and crude oil prices rose on Monday following the postponement of a meeting between Iran and other Gulf countries, while attacks targeting the Strait of Hormuz, the Red Sea and Saudi Arabian energy infrastructure heightened concerns over global energy supplies. The front month NBP contract reached an intra-day high of 210.25p before easing back before the close amid reports that Washington was seeking fresh negotiations with Iran. On the prompt, an unplanned outage at Norway’s Ormen Lange gas field supported prices, with the Day ahead contract gaining 8.55p by the close to end the session at 207.35p per therm. The front month Brent contract increased by $1.07 by the close to settle at $105.68 a barrel.
