Continuing violence in Iraq pushed Brent crude oil prices above $115 per barrel according to our daily market report from npower.
Last week Iraq’s refinery was attacked and over the weekend it was a battleground with Iraqi forces trying to oust the occupying rebels.
Ben Spry, the supplier’s Optimisation Desk Manager said: “Gas seasons have opened slightly lower and this is despite Brent oil continuing to be strong, above $115 a barrel on the back of that escalating violence in Iraq.”
The gas systems opened 11mcm “long” this morning with demand fairly weak and there were healthy injections into storage over the weekend, he said.
The “weak demand picture” for gas and power teamed with healthy supply is pressuring short term prices this morning.
European data was out this morning on the manufacturing side, as well as US manufacturing and housing data out this afternoon is worth keeping an eye on, added the analyst.