Oil and Gas prices - June 3

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Trading Economics

Oil
WTI crude oil futures rose to around $63.40 per barrel on Tuesday, extending gains for a second straight session as ongoing geopolitical tensions fueled concerns over tighter global supply.
> On Monday, Russia and Ukraine held their second round of direct peace talks following a sharp escalation in hostilities the previous day, but the discussions yielded no significant progress in resolving the three-year-long conflict.
> Additionally, an Iranian diplomat said Monday that Iran was poised to reject a US proposal to end a decades-old nuclear dispute, arguing that it fails to meet Tehran’s interests or ease Washington’s stance on uranium enrichment.
> Further intensifying supply concerns, a wildfire in Alberta, Canada, has forced the temporary shutdown of some oil and gas production.
> Meanwhile, OPEC+ kept output increases in July at the same level as the previous two months, alleviating fears of a larger supply boost.

Natural Gas
US natural gas futures surged to $3.70/MMBtu, supported by rising demand, lower output, and a broader energy market rally.
> Forecasts for warmer-than-normal temperatures boosted expectations for air conditioning demand.
> Meanwhile, gas production dropped to 105.0 bcfd in May from April’s record of 105.8 bcfd, mainly due to seasonal maintenance, including work on Kinder Morgan’s Permian Highway pipeline.
> The rally was also helped by a 3% jump in oil prices after OPEC+ decided to keep its July output increase unchanged.
> However, feedgas deliveries to US LNG export terminals fell to 15.1 bcfd from April’s 16.0 bcfd peak, as maintenance and brief outages at facilities like Cameron, Corpus Christi, Sabine Pass, and Freeport LNG limited flows.