Power and gas markets remain volatile amid conflicting geopolitical developments
Gas and power
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Yesterday, power and gas contracts opened lower but moved higher despite apparent progress in talks between Iran and Oman. While a final agreement has yet to be reached, Iran and Oman have reportedly agreed on a new shipping route and the distribution of revenues. It has been suggested that any deal remains contingent on US approval of the previous MoU terms, although the US has yet to comment directly on the discussions. Prices pushed higher later in the day as Trump stated that they were “not in a hurry” regarding talks, adding to uncertainty around the likelihood of a deal. |
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Adjacent markets
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Oil prices traded lower yesterday, extending Tuesday’s losses, as markets closely monitored reports of talks between Oman and Iran over a temporary reopening of the Strait of Hormuz. Meanwhile, equity markets were mixed, with UK indices closing lower while European markets remained broadly flat as investors awaited the latest US PCE inflation data and quarterly earnings from technology giant Nvidia. |
Closing prices
|
NBP (p/therm) |
UK Base (£/MWh) |
|||
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Close |
Day on Day |
Close |
Day on Day |
|
|
Sep-26 |
161.85 |
-0.88 |
129.89 |
0.15 |
|
Oct-26 |
163.12 |
-0.65 |
129.28 |
0.28 |
|
Nov-26 |
166.81 |
-0.75 |
140.76 |
0.74 |
|
Q4-26 |
166.23 |
-0.71 |
136.15 |
0.61 |
|
Q1-27 |
162.89 |
-0.31 |
135.85 |
0.28 |
|
Q2-27 |
110.25 |
0.65 |
92.37 |
-1.27 |
|
Win-26 |
164.57 |
-0.52 |
136.07 |
0.48 |
|
Sum-27 |
106.50 |
0.74 |
91.06 |
0.47 |
|
Win-27 |
103.48 |
0.41 |
91.50 |
0.06 |
|
Sum-28 |
73.11 |
0.39 |
67.24 |
0.4 |
|
Win-28 |
80.09 |
0.44 |
75.29 |
0.42 |