Prices fall on reports that US-Iran talks continue.
Gas and power
After opening higher, prices fell on Tuesday and ended the session at weekly lows. Losses were driven by reports that talks between the US and Iran were continuing, marking the first sign of diplomatic progress for some time. However, the decline was limited by reports that claims of an imminent deal were inaccurate. Despite the sell-off, market drivers remained skewed to the bullish side, with tensions in the Middle East and ongoing disruption to Norwegian gas flows continuing to tighten the supply outlook.
Adjacent markets
Oil prices were volatile yesterday but remained near five month highs after Yemen’s Houthis claimed responsibility for several recent attacks on Saudi Arabian energy, airport and military targets. Despite President Trump’s efforts to ease prices by lifting sanctions on Russian oil, geopolitical risk remained elevated following the sharp increase in attacks on vessels in recent weeks. Meanwhile, UK and European equity markets closed lower, extending losses for the week as civil unrest across parts of Europe weighed on investor sentiment. The UK labour market was also in focus, with the latest ONS data showing vacancies fell by approximately 2.9% in the three months to September.
Closing prices
|
NBP (p/therm) |
UK Base (£/MWh) |
|||
|
Close |
Day on Day |
Close |
Day on Day |
|
|
Nov-26 |
209.99 |
-7.18 |
165.91 |
-3.16 |
|
Dec-26 |
213.05 |
-7.62 |
165.15 |
-4.60 |
|
Jan-27 |
214.68 |
-7.63 |
178.78 |
-6.27 |
|
Q1-27 |
210.67 |
-7.52 |
171.51 |
-4.93 |
|
Q2-27 |
168.42 |
-4.94 |
129.29 |
-3.34 |
|
Q3-27 |
155.80 |
-3.72 |
122.48 |
-1.53 |
|
Sum-27 |
162.09 |
-4.34 |
125.73 |
-2.15 |
|
Win-27 |
155.02 |
-2.58 |
125.64 |
-1.24 |
|
Sum-28 |
97.52 |
-0.96 |
80.66 |
-1.22 |
|
Win-28 |
102.51 |
-0.49 |
86.50 |
-0.88 |
|
Sum-29 |
77.26 |
-0.67 |
72.82 |
-0.25 |