Wednesday 19th August

Power and gas prices close higher amid fading optimism for a deal

Power and gas prices closed higher yesterday after President Trump stated that the US would not seek to revive negotiations with Iran. Talks had already reached a deadlock before the Memorandum of Understanding expired, while Iran maintained a more offensive stance and signalled its readiness to escalate the conflict if its demands for reopening the Strait of Hormuz were not met. Meanwhile, weather concerns across Europe continued to ease, with forecasts indicating below normal temperatures through the weekend and into next week.

Oil prices edged higher yesterday as hopes for a peace deal between the US and Iran continued to fade. Comments from President Trump confirmed that no talks are scheduled to take place between the US and Iran, and the blockade continues in full force. Meanwhile an Iranian official re-enforced that the strait would remain shut until their conditions are met. The continued stalemate dampened market sentiment and helped keep oil prices supported. Elsewhere, global equity markets were also impacted by the situation in the Middle East and the consequent rise in energy prices, with many major indices sliding lower.

NBP (p/therm)

UK Base (£/MWh)

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Day on Day

Close

Day on Day

Sep-26

157.2325

4.75

126.675

1.59

Oct-26

158.0275

4.96

125.86

2.95

Nov-26

161.1275

5.03

135.395

2.26

Q4-26

160.6825

5.02

131.765

2.63

Q1-27

155.449

5.84

128.935

3.21

Q2-27

103.693

3.94

88.97

2.54

Win-26

158.0805

5.43

130.46

3.06

Sum-27

100.084

3.95

86.275

2.19

Win-27

98.6415

3.3

88.4

1.73

Sum-28

70.8585

1.17

65.635

0.72

Win-28

77.714

0.44

73.435

0.28