Prices react to hopes of Strait of Hormuz re-opening
The NBP softened further on Wednesday amid tentative hopes for a deal between Oman and Iran that could reopen a safe route for shipping via the Strait of Hormuz.
With that said, the US is not involved in the negotiations and officially maintains a blockade of all Iranian ports.
President Trump’s recent statements about the US potentially annexing the Strait of Hormuz as a US Overseas Territory and threats about bombing Oman if it obstructs US objectives are naturally limiting the bearish potential of this week’s news.
European storage is being increasingly scrutinised as we move closer toward the winter supply season. According to data from Gas Infrastructure Europe, the EU aggregate stood at 63.54% on Tuesday, 13% below the same date last year and 28% lower than in 2024.
The power market continued to closely mirror movements across adjacent markets, with higher renewables so far this week adding further weight at the front-end.
Data from Elexon shows that wind generation held firm at 9.8GW, maintaining its position as the single largest source of generation in the GB power mix at 31.9%.
The grid was also benefitting from a 24% increase in renewable output compared to a fortnight earlier, with some reactors coming out of long-term maintenance during this time.
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Price commentary courtesy of Crown Gas and Power 