Markets This Morning
UK wholesale gas prices are trading broadly in line with Wednesday’s settlement as the market pauses following three consecutive sessions of losses. The decline of more than 30.00p/th in the Summer-27 contract over this period has prompted some consolidation, with the front-season contract last trading at 155.15p/th. However, the recent downward momentum has been significant, and there remains scope for further price reductions should progress towards a negotiated end to the Iran conflict continue. Markets are now looking for clarity on the next steps in the diplomatic process, with the potential for further de-escalation likely to keep pressure on prices. Brent crude is also trading marginally higher following its recent sharp losses, as investors await further developments.
Yesterday in Summary
UK wholesale gas prices fell sharply on Wednesday, with the U.S. midterm election results increasing expectations of a negotiated resolution to the Iran conflict and easing concerns over prolonged disruption to global energy supplies. The front-month NBP contract settled 7.77p/th lower at 218.40p/th, while Summer-27 fell 11.77p/th. Brent crude also suffered heavy losses, declining 8.7% to $94.62/bbl as geopolitical risk premiums unwound. GB baseload power prices edged lower, with December contracts relatively resilient against the wider gas market decline. Meanwhile, EUA carbon prices moved marginally higher, supported by increased holdings among compliance buyers and investment funds.
