Markets This Morning
UK wholesale gas prices are regaining yesterday’s losses this morning as the markets are turning their expectations of a prolonged conflict which would stretch LNG export disruption out beyond the Winter. The front-month NBP price is trading up 3.50p since the market opened at a price of 194.23p per therm. Crude oil prices are continuing to ease as the sentiment around the extent of the damage to Saudi Arabia’s crude oil export capacity has relaxed, lowering the risk premium in spite of the widening conflict in the Middle East. The front-month Brent benchmark for crude oil prices has dropped $2.00 to a price of $102.82 per barrel.
Yesterday in Summary
UK wholesale gas and crude oil prices eased through the day on Thursday as reports of sufficient European storage levels and a forecasted El Niño driven mild Winter dampened gas demand expectations, while additional Saudi crude cargoes routed through Oman and a quicker than expected return to service for the East-West pipeline eased supply concerns following earlier attacks on Saudi energy infrastructure. The front-month NBP closed 2.72p lower at 190.73p per therm. The reports of restored Saudi export capacity pushed crude oil prices lower even as the conflict continued to hold Brent above $100 a barrel. The front-month Brent settled $1.01 lower at $104.82 a barrel, while WTI touched a one-week low of $101.91 a barrel, down $0.52.
