Markets This Morning
After initially opening higher this morning UK gas prices have again reversed course, with the front month contract last trading at a 7.98p discount to its previous close. Markets are responding to what appears to be a landslide victory in the U.S. midterm elections for the Democrats, as well as increased optimism around an end to the wars in both Iran and Ukraine. The Summer 27 contract last went through at 152.20p per therm, down 9.67p from yesterday’s close. Meanwhile, crude oil markets are taking a more cautious approach to today’s geopolitical landscape, with the front month Brent contract last going through at $101.65 a barrel, down $1.95 day-on-day.
Yesterday in Summary
UK wholesale gas prices and crude oil markets moved lower on Tuesday, despite early support from fresh U.S. strikes on Iran in the Strait of Hormuz. Reports that Washington would end billions of dollars in annual military support to Israel, as well as ongoing mediation efforts to reach a diplomatic resolution to the U.S.-Iran conflict helped ease concerns over further escalation in the region. The front month NBP contract shed 8.73p day-on-day to settle at 226.17p per therm. Crude oil markets also ended the day in negative territory, with the front month Brent contract coming close to breaking below the $100 mark before settling at $103.60 a barrel.
