Oil & Gas Prices - Oct 25

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Trading Economics:

WTI crude oil futures rallied 2.3% to settle at $71.8 per barrel on Friday, bouncing back from a two-day decline and securing a weekly gain of 3.7%. Investors are closely monitoring ongoing tensions in the Middle East, ceasefire negotiations, and the upcoming U.S. elections. The anticipated talks between Israel and Hamas to address the Gaza conflict have traders on edge regarding potential Israeli strikes on Iran. Additionally, market participants are watching for potential output adjustments from OPEC+ and the implications of the US election. The oil market has experienced significant volatility driven by Middle Eastern unrest and concerns over a potential surplus due to rising production from non-OPEC+ countries, alongside OPEC's plans to relax output restrictions. In the coming weeks, investors will also keep an eye on Japan's election, important interest rate decisions from three major central banks, and the announcement of the new UK government’s budget. < THERE IS NO SURPLUS OF OIL.

US natural gas NOV24 futures contract closes at $2.54/MMBtu reaching its highest point since October 11, despite forecasts of mild weather that will likely reduce heating demand. Meteorologists predict warmer-than-normal temperatures across the Lower 48 states through at least November 9, which allows utilities to inject more gas into storage than usual for this time of year. This marks a shift, as utilities are expected to inject more gas for a second consecutive week after 14 weeks of below-normal injections caused by reduced drilling activities amid low prices. Analysts now project that average natural gas output in 2024 could decline for the first time since 2020. Additionally, overall LNG feedgas supply is expected to remain below record levels for the next few weeks as some companies perform maintenance on their facilities in Louisiana, including Cheniere Energy and Cameron LNG.