Markets This Morning
Brent crude oil is trading over 2% lower this morning following reports that the U.S. is considering easing sanctions on Russia’s shadow fleet of tankers. Any relaxation of restrictions could reduce freight costs and improve flexibility in diesel shipments, following President Trump’s recent decision to temporarily lift sanctions on Russian diesel in an effort to ease global fuel prices. UK wholesale gas prices are also lower in early trading, with the front-month contract down 3.41p/therm at 212.60p/therm. However, it remains to be seen whether any easing of restrictions will have a meaningful impact on Russian LNG flows and global availability, while continued attacks in the Middle East remain a key source of support for the gas market.
Yesterday in Summary
UK wholesale gas prices eased on Wednesday after six consecutive sessions of gains, with the November contract recovering towards settlement as escalating Middle East tensions and reduced traffic through the Strait of Hormuz supported Asian LNG prices. November settled at 216.01p/therm, down 0.82p/therm, while longer-dated contracts moved higher. Brent crude rose to $106.06/bbl as attacks on Saudi energy infrastructure and shipping disruptions heightened concerns over supply security, despite signs of recovering Gulf exports. Carbon prices weakened, with Dec-26 EUA futures settling at €86.95/tonne, while near-curve GB baseload power contracts declined, contrasting with gains in Summer-27.
