Markets This Morning
The energy markets have opened firmer this morning with fears the conflict in the Middle East is about to escalate. A ballistic missile targeted at Riyadh was intercepted and destroyed last night as the Houthis continue their attacks on Saudi energy and transport infrastructure. Benjamin Netanyahu has met with Pete Hegseth, the U.S. Defence Secretary, and this could suggest the U.S. may be preparing to resume attacks on Iran. A representative from the foreign ministry in Qatar said yesterday that talks between Iran and the U.S. are continuing despite the growing tensions. In the gas markets, November last traded 3.43p per therm higher at 220.89p while the front month for Brent is up $1.97 to $111.52 a barrel.
Yesterday in Summary
Early gains to the UK wholesale gas curve were partially reversed on Monday but geopolitical unrest and concerns for gas supplies continued to underpin prices. The front month settled just over a penny per therm higher after trading up to almost 5.00p up in the morning. A little further along the curve, the Summer-27 contract added 2.18p to close at 166.48p. Gains to the prompt were capped by forecasts for mild temperatures for the next two weeks. In the crude oil markets, the easing of some sanctions on Russian oil by Donald Trump pressured crude oil prices early on but the losses were recovered after reports of Houthi attacks on Saudi Energy facilities.
