Markets This Morning
Energy prices have regained yesterdays losses after an attack on a refinery in Saudia Arabia reignited supply concerns. The Yemeni Houthis have again announced that they launched a strike in Saudi infrastructure creating further uncertainty of when the conflict in the region will end. Both gas and oil markets are pricing in a re-escalation in both conflicts in the near-term. The UK wholesale gas front-month NBP contract last traded at 240.80p per therm, up 6.47p since the market opened. Brent oil is also rising, the front-month Brent contract last traded at $114.91 per barrel having risen $1.03.
Yesterday in Summary
UK wholesale gas prices shed some of their gains on Tuesday as talks between Iran, Saudi Arabia, Turkey and Pakistan were reportedly positive, though stalled shipping through the Strait of Hormuz and the threat of further U.S.-Israeli strikes on Iran kept prices elevated. Meanwhile, Brent crude oil prices eased from a near six-month high on the reported progress, with persistent Houthi attacks on Saudi energy infrastructure, including a claimed strike on the Ras Tanura refinery, limiting losses. The front-month NBP contract lost 1.03p day-on-day to settle at 237.33p per therm, with October marking the worst month for attacks on Hormuz shipping since the war began. The front-month Brent contract fell $1.93 to settle at $113.88 per barrel.
