Friday 23 October

 Prices rise on concerns over an escalation in the conflict between the US and Iran

Gas and power

Power and gas prices rose on Thursday, although intraday movements in front-season contracts remained limited. Reports of a possible escalation in the US-Iran conflict following the November midterm elections supported prices, with markets increasingly expecting regional supply disruptions to persist into the new year. Forecasts for two storms arriving in the UK over the weekend strengthened the short-term demand outlook and provided additional support to prices. 

Adjacent markets

 Oil prices traded higher during yesterday’s session, gaining around 2% to reach a new five-month high. Prices were supported by recent Houthi attacks in Saudi Arabia, which prompted Aramco to order staff to evacuate its Dhahran headquarters and heightened concerns over further supply disruption. Meanwhile, UK and European equity markets ended the session lower despite some positive UK corporate earnings, as rising oil prices and concerns over the sustainability of AI financing weighed on investor sentiment. 

Closing prices