Markets This Morning
Crude oil prices have eased in early trading this morning following reports that Yemen backed by Saudi forces have secured the Red Sea and the Bab el Mandeb Strait. Houthi forces backed by Iran had ceased control of the Strait which disrupted Saudi Arabian crude oil exports diverted from the Strait of Hormuz. The December contract for Brent last traded at $98.77, down $1.55 a barrel. The gas markets have opened with sharp gains with the front month 7.78p per therm up in early exchanges. Contracts out to next winter have opened all opened firmer with Summer 27 last trading at 145.00p, up 7.78p on last night’s close. Prompt prices have reacted to the near curve and the Day ahead product is 8.00p higher at 187.00p.
Yesterday In Summary
Reports of an increase in exports of crude oil from the Middle East coupled with a pledge from the G7 to release 100m barrels of diesel and crude stocks from emergency reserves pressured crude oil prices on Monday. Brent for December delivery eased by 1.9% or $1.93 a barrel to settle at $100.32 a barrel. In the gas markets, there were also reports that LNG vessels transiting the Strait of Hormuz has increased which weighed on the near curve yesterday and the front month declined by 4.51p per therm, settling at 183.59p. Contracts past the winter edged higher on the day.
