Markets This Morning
Energy prices are continuing their rise this morning after China has announced they are suspending oil product exports. Global fuel markets have already been tightening, and this announcement has added further stress to the markets. The U.S. administration has also called on Europe to draw down on their emergency diesel stocks or face a potential U.S. diesel export ban. UK wholesale gas is up 1.95p this morning with the front-month NBP contract trading at 186.68p per therm. The front-month Brent contract has gained $2.66 since the markets opened at a price of $100.69 per barrel.
Yesterday in Summary
UK wholesale gas and crude oil prices rose on Wednesday as stalled talks between the U.S. and Iran over reopening the Strait of Hormuz kept a geopolitical risk premium in energy markets. The front-month November-26 NBP contract gained 6.55p day-on-day to settle at 183.25p per therm, while the Day-ahead contract added 1.53p to 182.56p per therm as steady renewable output was eclipsed by geopolitical uncertainty. Crude oil prices gained about $1, with the November-26 Brent contract rising 91c to settle at $103.50 a barrel on expiry, a 14% monthly gain, while the more active December-26 contract added $1.87 to settle at $98.03 a barrel.
