Markets this morning
The UK gas market has recovered some of Friday’s losses in morning trading, with the geopolitical outlook remaining mixed. The front month contract last traded at 217.20p per therm, up 4.95p on Friday’s close. Cooler weather forecasts for the remainder of the week are providing support to the prompt market, offsetting the impact of lower gas-for power demand. By contrast, crude oil prices have edged lower following comments from U.S. President Donald Trump over the weekend that played down the prospect of further strikes on Iran. However, continued attacks on ships in the Strait of Hormuz have helped limit the downside. The front month Brent contract last went through at $97.49 a barrel, down 83 cents on Friday’s close.
Yesterday in Summary
UK wholesale gas prices fell sharply on Friday as expectations of a de-escalation of the conflict in the Middle East grew. The front month contract declined by 12.67p to settle at 212.25p per therm, a week-on-week decline of 17.6%. The prompt market also moved lower, with Day ahead shedding 10.55p day-on-day to close out the week at 213.45p per therm. In contrast, crude oil markets settled higher after showing losses earlier in the session. Aggressive comments from U.S. President Donald Trump late in the day supported prices, with the front month Brent contract ending the session at $98.32 a barrel, up just 3 cents day-on-day, but still down 16.4% week-on-week.
The UK gas market has recovered some of Friday’s losses in morning trading, with the geopolitical outlook remaining mixed. The front month contract last traded at 217.20p per therm, up 4.95p on Friday’s close. Cooler weather forecasts for the remainder of the week are providing support to the prompt market, offsetting the impact of lower gas-for power demand. By contrast, crude oil prices have edged lower following comments from U.S. President Donald Trump over the weekend that played down the prospect of further strikes on Iran. However, continued attacks on ships in the Strait of Hormuz have helped limit the downside. The front month Brent contract last went through at $97.49 a barrel, down 83 cents on Friday’s close.
