Markets This Morning
UK wholesale gas prices have continued to rise this morning, but have eased off earlier highs. After trading up to 215.96p per therm, the front month NBP contract last went through at 213.70p per therm. Ongoing unrest in the Middle East continues to support the market, with Saudi Arabia’s energy minister vowing a serious response to the deadly attacks on the kingdom’s airports and oil and gas facilities by Yemen’s Iran-backed Houthi movement. In contrast, crude oil prices have eased lower after U.S. President Donald Trump said that Russia had agreed to supply diesel to global markets and his administration temporarily lifted U.S. sanctions on Russian fuel. The front month Brent contract has shed $1.70 so far to last go through at $104.95 a barrel.
Yesterday in Summary
UK wholesale gas and crude oil prices moved higher on Monday amid renewed geopolitical unrest in the Middle East accompanied by the continued stalemate on U.S.-Iran talks. The front month NBP contract gained 7.14p day-on-day to settle at a year to date high of 209.70p per therm. Meanwhile, crude oil markets cautiously assessed the news that Russia had agreed to supply more than 2.25 million barrels of diesel to U.S. and global markets, and that Russia and Ukraine had apparently agreed to an energy ceasefire. The front month Brent contract gained $1.93 by the end of the session to settle at $106.65 a barrel, its highest close in almost four weeks.
