Markets This Morning
Crude oil prices have eased off Friday’s highs this morning after President Trump signed an executive order late on Friday waiving key sanctions and tariffs on Russian supplies. The front month Brent contract for December delivery last went through at $108.36, a fall of $1.50 from its previous close. In contrast, wholesale UK gas prices have continued to rise as Strait of Hormuz disruption remains a key geopolitical risk and unrest in the region remains high. The front month NBP contract last went through at 219.94p, again representing fresh year-to-date highs. The prompt market also remains elevated on strong demand fundamentals, with the Day ahead contract up by 2.50p on its previous close.
Yesterday in Summary
UK wholesale gas prices and crude oil markets rose on Friday amid an intensifying geopolitical outlook in the Middle East. Supply concerns have grown following a surge in attacks on vessels transiting the Strait of Hormuz alongside further missile launches targeting Saudi Arabia, combined with the apparent abandonment of an energy ceasefire between Ukraine and Russia announced last week. The front month NBP contract increased by 2.75p by the close to settle at 216.40p per therm, a week-on-week gain of 6.8%. Meanwhile, the front month Brent contract gained $3.94 to settle at $109.86 a barrel, its highest close since mid-May.
