Markets This Morning
Houthi attacks on Saudi airports continued at the weekend. Riyadh airport has been targeted several times while an energy congress is due to take place in the Saudi capital from Sunday until Thursday. Many of the large energy exhibitors have cancelled attendance due to the attacks. Donald Trump has raised the possibility of the U.S. aiding Saudi Arabia in the fight against the Houthis, but this could threaten any talks with Iran. The energy markets have opened stronger with UK gas prices around 1.6% or an average of 3.20p per therm higher in early showings. Brent has added 78 cents to a barrel of crude oil and the latest exchange was completed at $105.50 a barrel. Carbon prices are slightly lower with European Allowances for Dec-27 down 31 cent per tonne.
Yesterday in Summary
Early losses to the near curve for UK gas futures were quickly reversed on Friday following reports of a strike on an LNG carrier by the Iranian navy. The November contract for the NBP had traded to a low of 189.44p per therm after posts from Donald Trump hinted that talks being held to end the war with Iran were productive. The front month moved higher through the afternoon and settled 6.89p up at 202.56p while the summer contract posted a 1.92p gain, closing at 150.42p, the highest close since the U.S. attacked Iran. Crude oil prices followed a similar trend on the day and Brent for December delivery added 44 cents a barrel.
