Prices close higher on escalating tensions in Yemen
Gas and power
Gas and power prices moved higher yesterday, supported by escalating tensions in Yemen between Houthi rebels and Saudi-backed forces. Earlier in the week, Houthi rebels targeted two Saudi oil tankers, and hostilities continued yesterday afternoon with attacks on Saudi-aligned troops in Yemen. Regarding the deal to reopen the Strait of Hormuz, reports earlier in the week suggested a deal was close to being finalised. However, the lack of further progress has weakened market optimism. Both factors provided support to prices during yesterday’s session.
Adjacent markets
Oil prices rose during yesterday’s session despite reports that Iran and Oman had reached an agreement on the coordinates for a proposed shipping route through the Strait of Hormuz. Claims by the Houthis of attacks on Saudi Arabian oil infrastructure in Yemen dampened market optimism around a restoration of flows in the region. Meanwhile, equity markets were mixed, with UK indices ending the session lower despite trading higher for much of the day as investors digested the latest corporate earnings results, while European markets closed higher, supported by positive industrial data.
Closing prices
| NBP (p/therm) | UK Base (£/MWh) | |||
| Close | Day on Day | Close | Day on Day | |
| Sep-26 | 137.205 | 8.710 | 115.030 | 3.890 |
| Oct-26 | 137.248 | 8.320 | 112.630 | 5.720 |
| Nov-26 | 140.953 | 8.200 | 123.195 | 5.210 |
| Q4-26 | 140.037 | 8.100 | 119.015 | 5.380 |
| Q1-27 | 133.909 | 7.030 | 115.155 | 3.750 |
| Q2-27 | 94.098 | 4.840 | 82.785 | 1.650 |
| Win-26 | 136.990 | 7.570 | 117.045 | 4.760 |
| Sum-27 | 90.993 | 4.870 | 81.225 | 2.490 |
| Win-27 | 89.734 | 2.730 | 83.710 | 2.590 |
| Sum-28 | 67.807 | 2.640 | 63.740 | 0.900 |
| Win-28 | 75.005 | 1.790 | 72.180 | 2.090 |