Oil & Gas Prices - Nov 1

[dan_s]

At the time of this post (8:23 AM CT) WTI was trading at $71.05 and HH Ngas was trading at $2.68.

Trading Economics:
WTI crude oil futures rose toward $71 per barrel on Friday, advancing for the third consecutive session, as market attention shifted back to the Middle East conflict. This change was prompted by a report suggesting that Iran may be preparing to launch an attack on Israel from Iraqi territory in the coming days, with media sources indicating that the anticipated attack could involve drones and ballistic missiles.
> Investors remained on edge, especially following Israel's military chief's warning that a "very hard" strike on Iran would follow any further missile attacks.
> Oil prices were also bolstered by expectations that OPEC+ might postpone the planned increase in oil production scheduled for December by a month or longer.
> Additionally, China, the world’s top crude importer, saw manufacturing return to growth in October, according to both private and official surveys, indicating that stimulus measures are starting to take effect. Still, oil is set to record a weekly decline.
There is strong technical support for WTI at $67/bbl, which has been tested four times in the last 12 months. WTI quickly moved back over $70 each tme.

US natural gas futures fell to below $2.70/MMBtu, declining sharply from the over four-month-high of $3.10 amid lower risk premiums and evidence of ample domestic supply. Shifting perceptions on supply risks from the Middle East triggered declines in natural gas futures among major trading hubs, largely due to Israel’s choice of not striking Iran’s oil infrastructure and Tehran’s refrain from further retaliation so far. < War in the Middle East has nothing to do with the fundamentals for U.S. natural gas. Natural gas prices in Europe and Asia are over $13.00/MMBtu.
> This compounded data from Wood Mackenzie suggesting that US production rose to 103 bcf per day in late October, near record highs.
> This was in line with the ample increase in reserves during the fourth week of the month, with EIA data pointing to a 78 bcf build.
> In the meantime, expectations of more moderate cold weather in the Lower 48 states limited demand for gas-intensive heating, also pressuring prices.