Markets This Morning
Energy prices have moved higher this morning after Iran and the U.S. seemingly moved further away from reaching a deal. Over the weekend U.S. President Donald Trump rejected Iran’s recent peace proposal, while there were also reports of missile and drone explosions on Sunday in southern Iran near the Strait of Hormuz. The front month NBP contract last went through at 184.94p per therm, a gain of 5.14p on Friday’s close. Crude oil prices have similarly edged up in early trade, driven by the diminished geopolitical optimism. The front month Brent contract is up $3.65 day-on-day having recently gone through at $107.97 a barrel.
Yesterday in Summary
UK wholesale gas prices and crude oil markets moved lower on Friday amid reports that U.S. and Iranian negotiators were exploring a phased path toward ending their conflict. The news raised hopes of a potential de-escalation, with discussions reportedly including the reopening of the Strait of Hormuz by Tehran and a lifting of U.S. economic restrictions on Iran. The front month NBP contract shed 7.76p day-on-day to end the week at 179.80p per therm. Crude oil prices also moved lower, with the front month Brent contract shedding $2.28 by the close to settle at $104.32 a barrel.
