Markets This Morning
Energy prices are in decline this morning as hope of a diplomatic solution between the U.S. and Iran holds despite yesterday’s U.S. rejection of the proposal to reopen the Strait of Hormuz within the next seven days. Reports yesterday suggested that crude oil exports in September are at their highest level since February which is easing sentiment on supply risk. UK wholesale gas is down roughly 3% this morning with the front-month NBP contract losing 5.30p at a price of 177.95p per therm. The front-month Brent contract is down $0.53 since the markets opened at a price of $104.75 per barrel.
Yesterday in Summary
UK wholesale gas prices and crude oil markets moved higher on Monday after U.S. President Donald Trump rejected an Iranian proposal to reopen the Strait of Hormuz, though reports that negotiators from both countries were continuing talks tempered the gains. The front-month NBP contract rose 3.45p day-on-day to settle at 183.25p per therm, while the Day-ahead contract gained 3.86p to 182.56p per therm as lower renewable output added to the geopolitical risk premium. Crude oil prices posted more modest gains, with the front-month Brent contract rising 96c to settle at $105.28 a barrel after climbing as much as $4 earlier in the session, while the WTI benchmark added 19c to settle at $92.60 a barrel.
