Markets This Morning
Energy prices are in decline this morning following positive reports from Qatari mediators after they met with Iran around further peace talks with the U.S. administration. Iran have stated supporting claims that talks with the mediators are “ongoing and progressing”. The U.S. have not escalated attacks immediately following their midterm election weekend as the markets had anticipated on Friday, easing sentiment on supply risk. The front-month NBP gas price last traded at 248.74p per therm, down 8.86p since the market opened. The Brent crude oil front-month is down $4.68, last traded at $108 per barrel.
Yesterday in Summary
UK wholesale gas prices climbed on Friday as markets priced in a potential escalation of the conflict with Iran after the U.S. midterm elections, while another reported Iranian attack on a vessel in the Strait of Hormuz added to supply concerns. Meanwhile, Brent crude oil prices rose on the escalation risk, with a U.S. order for non-emergency government staff to leave Saudi Arabia and Houthi claims of attacks on Saudi oil sites outweighing renewed Qatari mediation efforts and higher Saudi exports in October. The front-month NBP contract gained 14.40p day-on-day to settle at 257.60p per therm, with October marking the worst month for attacks on Hormuz shipping since the war began. The front-month Brent contract rose $2.76 to settle at $117.64 per barrel.
