Markets This Morning
The gas markets were directionless and oscillated between losses and gains in the first hour this morning but near months have shed premium over the last sixty minutes. The December contract for the NBP is down 8.32p per therm to 216.60p while the contract for next summer has shed 3.83p. Prompt prices have less liquidity but the Day ahead is down around 6.00p. In the crude oil markets, Brent has eased by over three dollars a barrel from the high this morning of $100.83 a barrel. With the latest trade for Brent going through at $97.66 a barrel, the global benchmark could post the largest weekly percentage drop since 2020. Tech stocks have tumbled in Asian markets overnight amid fears the Democrats could slow progress of Artificial Intelligence companies.
Yesterday in Summary
After three sessions of declines which saw the front months for the NBP fall by almost 40.00p per therm UK gas prices rebounded on Thursday. The near curve had fallen to fresh eight-week lows on hopes that a deal to open the Strait of Hormuz was close. Yesterday reports of attacks on tankers trying to navigate the waterway provided support and the front month, December settled 6.52p per therm higher at 242.92p. The Summer and Winter contracts added 6.50p and 4.50p but look set to post a sharp loss for the week. Crude oil prices also rebounded yesterday with Brent for January delivery adding $3.67 to close at $98.29 a barrel.
