Markets This Morning
Energy prices are in decline this morning following an EU meeting this morning which discussed a proposal to release additional French diesel stockpiles in response to U.S. pressure. The proposal would have European countries release 50 million barrels of diesel and IEA members to release 50 million barrels of crude oil. Prices settled higher yesterday following an announcement of a Chinese export ban on all oil products and the markets remain elevated due to the persisting disruptions to supply through the Strait of Hormuz. UK wholesale gas last traded at 181.24p per therm, down 5.29p since the market open. The front-month Brent contract has lost $3.21, last traded at $99.10 per barrel.
Yesterday in Summary
UK wholesale gas and crude oil prices rose on Thursday as reports of a growing U.S. military presence in the Middle East added to the geopolitical risk premium. The front-month November-26 NBP contract gained 3.45p day-on-day to settle at 186.53p per therm, the Day-ahead contract added 3.54p to 181.75p per therm as steady renewable output was outweighed by the rising risk premium. Crude oil prices gained more than $2, as a Chinese ban on oil product exports added to supply concerns already heightened by tight global diesel inventories, with the front-month December-26 Brent contract rising $4.28 to settle at $102.31 a barrel.
