BoE minutes cite longer oil and gas supply disruption
The Bank of England’s September Monetary Policy Committee minutes point to a 36% rise in Brent crude and a 78% rise in UK wholesale gas prices since July
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Chart: USO, a fund that tracks crude, daily closes since Jun
UpdateWednesday, September 30, 2026 at 5:45 AM ET
The Bank of England's Financial Policy Committee said UK households and businesses remain strong and the banking system is well capitalised. It added that risky credit markets, particularly private credit, remain sensitive to tighter financing conditions.
UpdateWednesday, September 30, 2026 at 5:45 AM ET
The Bank of England's Financial Policy Committee said financial markets have stayed strong despite the rise in energy costs and bond yields. The committee added that the chance of financial risks materialising at the same time has increased since July.
Brent closed at $106 a barrel and UK gas at 207 pence a therm on 14 September, the minutes said.
The committee traced the rise to a disruption it described as longer than expected. In July, the Bank's Monetary Policy Report had already pointed to renewed attacks on shipping and a re-escalation of the Middle East conflict following a US-Iran memorandum of understanding, saying damage to energy infrastructure was likely to keep supply constrained for several quarters.
For traders positioned in crude through funds such as USO, which tracks oil prices directly, the update changes little. Bank of England governor Andrew Bailey had already flagged in early September that energy prices could climb further amid US-Iran tensions, and the market has for weeks been pricing an acute supply-risk premium into crude. A UK monetary authority describing an existing disruption as longer, without new data on production, the Strait of Hormuz or inventories, is a lagging observation on domestic policy rather than fresh information about global supply or demand. The oil outlook for USO holders remains unchanged.