On Today’s Daily Market Update:
The oil market exhibited continued volatility, with Thursday's session reflecting uncertainty over OPEC+ actions and macroeconomic developments. U.S. Q3 GDP growth outpaced expectations, but this did not alleviate market apprehensions, as evidenced by the dip in front month WTI prices.
Speculative positioning and potential producer hedging at the $80 level contributed to market dynamics. Geopolitical tensions, particularly involving Israel, Hamas, and Iran, add complexity but have yet to directly impact oil supply. In the natural gas sector, bullish EIA inventory reports and shifting weather forecasts fueled a significant price increase at the front of the curve, with winter '23-'24 strip pricing approaching $3.50. The market remains sensitive to weekly EIA data and weather model outputs, suggesting a cautious outlook as winter approaches.
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