Markets This Morning
Movement across the NBP near curve is mixed this morning, reflecting conflicting geopolitical reports. Data showing that an increasing number of LNG vessels are passing through the Strait of Hormuz is mitigating the upside from news that further attacks on tankers have occurred and that Yemen’s government has launched an offensive against the Iran-aligned Houthi rebels. The front month NBP contract last went through at 187.20p per therm, down 0.90p on Friday’s close, while the January 27 contract is trading up by 0.68p day-on-day. Crude oil prices have inched higher this morning despite reports that crude oil exports from the Middle East increased. The front month Brent contract last went through at $102.40, up 15 cents from its previous close.
Yesterday in Summary
UK wholesale gas prices edged higher on Friday amid reports that the United States had deployed 10,000 troops into the Middle East, raising the prospect that the conflict could escalate further. The front month NBP contract gained 1.57p by the close to settle at 188.10p per therm, its highest close in over a week. Prompt contracts also moved higher, despite ongoing mild temperatures and reduced gas-for-power demand levels. Crude oil markets edged modestly lower after European leaders agreed to U.S. President Trump’s request to release strategic diesel and crude oil reserves. The front month brent contract shed just 6 cents by the close to settle at $102.25 a barrel.
