Markets This Morning
Energy prices are in decline this morning as the U.S. President Trump announced on social media late last night that the U.S. will not strike Iran again until the midterm elections. China have announced they are resuming oil product exports which is further easing global supply concerns. The escalation of attacks on shipping in the Middle East remains a concern, Iran have stated that they are reviewing a response from the U.S. to their proposal to reopen the Strait of Hormuz in the next seven days. Hurricane Isaias’ impact on the U.S. oil production is yet to be fully assessed, but offshore production in potential impact areas are still shut down since yesterday. The UK wholesale gas NBP front-month contract has shed 2.94p since the market opened and last traded at 192.73p per therm, front-month Brent is down $1.17 and last traded at $103.11 per barrel.
Yesterday in Summary
UK wholesale gas and crude oil prices rose on Thursday as an escalation of Iranian attacks on shipping in and around the Strait of Hormuz added to the geopolitical risk premium. The front-month November-26 NBP contract gained 2.05p day-on-day to settle at 195.67p per therm, with gains pared late in the session after U.S. President Trump described U.S.-Iran talks as productive. Crude oil prices rose around 4%, further supported by Hurricane Isaias forcing shut-ins at U.S. offshore production and fresh U.S. sanctions targeting 17 vessels transporting Iranian oil, with the December-26 Brent contract rising $4.08 to settle at $104.28 a barrel, while WTI gained $3.21 to $91.49 a barrel.
