Markets This Morning
Reports of further Houthi attacks in Saudi Arabia and strikes on vessels in the Persian Gulf have heightened fears over regional energy flows this morning. Iran’s Islamic Revolutionary Guard Corps Navy claimed that four vessels allegedly involved in illegal oil transfers were struck and caught fire in the northern Persian Gulf, while three additional vessels reportedly struck mines west of the Strait of Hormuz. Meanwhile, Norwegian gas exports to the UK have fallen by 25mcm/d to 60mcm/d, further adding to system tightness. The front-month UK NBP Nov-26 contract is trading 4.29p higher at 219.51p/therm, while Brent crude has risen $2.89 to $111.71/bbl amid renewed concerns over Middle Eastern supply disruptions.
Yesterday in Summary
Energy markets were broadly higher on Wednesday as fading hopes of a US–Iran diplomatic breakthrough renewed concerns over Middle Eastern supply disruptions. UK front-month gas rose 5.86p to 215.22p/therm, while higher heating demand pushed European gas storage into net withdrawals. GB front-month power gained £3.50 to £169/MWh, although strong wind generation weighed on day-ahead prices. European carbon edged higher to €85.91/tonne, while Brent crude settled at $108.82/bbl as traders weighed continued shipping disruptions against the prospect of renewed Russia–Ukraine peace talks.
