Markets This Morning
Energy prices are continuing their upward trend this morning as Mike Waltz an envoy of the U.S. administration has stated that they are preparing for a long running conflict with Iran. Markets were already under heightened supply concerns with the conflicts in the Middle East and Ukraine, the news that the conflict restricting Gulf state exports has no end in sight has led to an influx in buying this morning. The UK wholesale gas front-month NBP contract last traded at 231.03p per therm, up 9.05p since the market opened. Brent oil is also rising, the front-month Brent contract last traded at $114.34 per barrel having risen $1.17.
Yesterday in Summary
UK wholesale gas prices rose to their highest since December 2022 on Thursday as reports of U.S.-Israeli plans to renew strikes on Iran after the U.S. midterm elections added to the geopolitical risk premium. Meanwhile, Brent crude oil prices climbed to a five-month high as further Houthi attacks in Saudi Arabia deepened supply concerns. The front-month November-26 NBP contract gained 6.76p day-on-day to settle at 221.98p per therm, with continued Russian attacks on Ukrainian energy infrastructure and the season’s first European storage withdrawal adding further upward pressure. The December-26 Brent contract rose $4.35 to settle at $113.17 per barrel, its highest since May 4th.
