Volatility remained in the wholesale market last week as geopolitical events kept oil moving from strength to strength. These were the words of npower Optimization Desk Manager, Magali Hodgson who said bullishness was seen across all fuel contracts.
Magali Hodgson told ELN: “Tensions over Iran issues became heightened together with increasing violence in Syria and an oil dispute in Sudan. IAEA inspectors had been denied access to some of Iran’s key nuclear sites which gave strength to oil.”
Greece securing its second bailout package, along with Spanish and Portugese bond auctions also added to the bullish sentiment. Front month Brent traded at a nine month high above $124 a barrel.
Looking ahead, npower say there is likely to be more volatility and bullishness. Gas stocks are low in the UK at the moment and need particular attention should there be another cold snap.