Markets This Morning
UK wholesale gas prices have moved higher this morning after US President Trump said he was unwilling to ease sanctions on Iran, despite continuing indirect peace talks. The new front-month UK gas Nov-26 NBP contract is trading 3.01p higher at 179.54p/therm. Gas-for-power demand is also expected to rise sharply on the Day-Ahead, increasing by around 17 mcm/d to 47 mcm/d as wind generation is forecast to fall well below normal tomorrow. Brent crude has also moved higher, with the Nov-26 contract up $0.87 at $103.46/bbl on its final day of trading. Brent remains on course for a monthly gain of around 14%, its strongest monthly increase since July. The new Brent front month Dec-26 last traded at $97.4/bbl, a $6.06 discount to the November contract
Yesterday in Summary
UK wholesale gas prices fell sharply on Tuesday as ongoing US-Iran talks and stronger Norwegian flows eased supply concerns, with Oct-26 NBP settling 8.69p lower at 174.56p/therm. GB power prices followed gas lower, with Oct-26 baseload down £8.10 at £138.75/MWh, while stronger wind forecasts weighed on prompt prices. Dec-26 EUAs slipped 0.3% to €85.95/tonne as falling gas prices reduced expected allowance demand. Brent crude also declined, falling 2.56% to $102.59/bbl as recovering Middle Eastern exports and stronger Saudi pipeline flows eased immediate supply concerns.
