Wednesday 12th August

Gas and power

 Prices eased throughout yesterday's session after Qatar reported that talks between Oman and Iran had reached an advanced stage. Optimism over a potential agreement to reopen the Strait was further supported by comments from a Pakistani minister suggesting Iran and the US are close to some sort of arrangement. While details remain limited, the market has reacted positively, leading prices lower. However, day-ahead markets continue to find support from low wind generation well above seasonal normal temperatures. 

Adjacent markets

 Oil prices remained near weekly highs yesterday despite reports from Qatar suggesting that talks between Iran and Oman over the reopening of the Strait of Hormuz were at an advanced stage. Investors remained cautious, however, given the potential obstacles to any agreement following recent demands made by both Iran and the US, limiting optimism around a swift resolution. Meanwhile, equity markets were mixed once again, with UK indices closing lower amid ongoing geopolitical uncertainty and signs of slowing retail sales growth. 

Closing prices