Markets This Morning
UK wholesale gas prices have recovered yesterday’s losses this morning amid reports that a tanker was struck by explosives in the Strait of Hormuz. Optimism surrounding renewed U.S-Iran peace talks has also waned, with Iran confirming receipt of a letter from U.S. Vice President JD Vance but yet to issue a response. Meanwhile, news that QatarEnergy has signed a further long-term LNG supply agreement suggests the company may be preparing for a prolonged disruption to Strait of Hormuz transit, adding to concerns over the outlook for regional supplies. The new NBP front month contract for December 26 delivery last went though at 255.17p per therm, up 11.97p day-on-day. Crude oil prices have also moved higher amid growing doubts for a viable diplomatic pathway to peace and increased expectations of further escalation in the conflict over the coming weeks.
Yesterday in Summary
UK wholesale gas prices and crude oil markets eased on Thursday amid renewed optimism around U.S.-Iran peace talks. Reports that U.S. Vice President JD Vance reached out to Tehran directly provided fresh hopes for a diplomatic end to the conflict. An improving U.K. LNG arrivals schedule added to the NBP near curve downside, with the expiring November 26 front month contract shedding 7.08p day-on-day. Crude oil losses were more subdued, with ongoing attacks on Saudi Arabian energy infrastructure by Yemen’s Houthis limiting the downside. The front month Brent contract for December 26 delivery shed 44 cents day-on-day to settle at $114.88 a barrel.
